Sloppy Service from London & Country

LiamM_2

I'm actually rather upset by this whole affair!

I'm currently earning £29,500 and am looking to make the move into the world of houses. I've been looking around at 100% mortgages and was pushed to the London & Country site seeing it was recommended by Martin Lewis and after a work colleague had also used them.

I initially had a call back about 3 weeks ago and spent about 30minutes on the phone answering lots of questions about my income, bonuses, outgoings (my car loan being the main one) etc.. etc..

After a little while, the advisor came back with some great news that I could borrow upto £177k.

Being a newbie I asked if I need apply just to make sure prior to making any moves on property and he said no and that he was fairly confident "they would deal".

I kept clarifying this with him for the following 2 weeks whilst I searched around for property and also asked about 95% LTV loans if I could come up with a smallish deposit. He remained confident that his calculations were correct.

So, I started looking around for houses. I found one last week and put an offer in that wasn't accepted but then I found a house this weekend that I fell in love with. Cost = £155k. I've spoken to the Vendor and I think we may be able to strike a deal - so I think great, I'll just give my L&C advisor a ring to firm up some details.

Over the weekend I have sent emails that were read but not replied to so I tried calling today. After being cut off twice and put through to voicemail once I was eventually put through to the advisor. Unfortunately he had bad news. "Sorry he said" "the maximum you're looking at is around £149 with the car loan". He said that was with Abbey, and that Skipton might be another option to explore. So after my heart sank through the floor I asked him to take a look at Skipton and give me a call back.

10 Minutes later and he was on the phone again. "Great news" he said. Skipton would lend upto £230k. At nearly 10 times my salary I said "what?!?" (though at the same time being extatic I might be able to raise the funds for the property). "I know" said he, "crazy isn't it - but they have been increasing what they will lend recently".

But then he said "oh, wait one moment, my colleague is just showing me something" before putting me on hold. He then came back to sink my heart again "sorry, I had put something wrong in the website".

So, I'm now almost distraught, with my dream home lined up but with no way of financing it. I've been pulled up and down by L&C multiple times and been given advice that was simply not true. When intially telling me I could borrow upto £177k he encouraged me to go make some offers and come back to him when accepted.

I guess there is nothing I can do and I'm going to have to live with it - or find some other way of financing the paying off of my car loan. But I was clear with him from the start that I had that commitment and he confirmed his figures took this into account.

Not happy :-(

Anyone else had the same lies from them?

MortgagesInc

This does surprise me, as I've heard nothing but good things about L&C.

That being said, I'm not sure why the adviser didn't go through an Agreement in Principle at the outset, to confirm the exact level they would lend.

Have they calculated what you could borrow if you consolidated the car loan in to your new mortgage - not ideal, but it might allow you to get the property you want - you could then reassess your own finances at the end of the inital rate.

gemma.zhang

Don't feel disappointed !!! .. Chin up !!!.. I will suggest you start calling independant financial advisors.. talk to more of them, to seek different advice.. .. It's gonna be fine !!! ..will leave other professional MAs on the forum to give u more accurate advise.

good luck.

financegirl

Does anyone actually know how much impact a car loan/personal loan has on the terms and condiitons of someone getting a mortgage. I'd be interested to hear from mortgage advisors on this one.

toonfish

financegirl wrote: »

Does anyone actually know how much impact a car loan/personal loan has on the terms and condiitons of someone getting a mortgage. I'd be interested to hear from mortgage advisors on this one.

basically th emonthly repayments are deducted from your salary with most lenders so if you pay £300 per month they will deduct £3600 before applying the income multiples.

In response to the original poster you have encountered one of their new graduates I suspect, who believes what the sourcing system tells him - you're hard pushed to get 6x income without any other commitments, and especially at 100%

financegirl

thanks toonfish:beer:

Liam..just keep going call every mortgage advisor going (within reason) and find out your available options. Whay don't you call lonodn and country and ask to speak to a supervisor, I'm sure they're open to feedback!! Also,on a different note if you really want and love the house have you tried cosmic ordering it..noel edmonds does it..it's basically when you ask the universe for what you want.

I was sooooo suspicous but things have happened to me since i started doing it, and before everyone asks no i'm not linked/trying to plug a cosmic ordering site/book..just am completely nuts!!!:rotfl:

[Deleted User]

Well, I spoke to L&C on Wed 3rd Oct and still haven't heard back from them, I am not sure what to think?

jonewer

MortgagesInc wrote: »

This does surprise me, as I've heard nothing but good things about L&C.

That being said, I'm not sure why the adviser didn't go through an Agreement in Principle at the outset, to confirm the exact level they would lend.

Doesnt suprise me one bit.

L&C said exactly the same to me. In fact they told me not to come bothering them until I had an offer accepted on a house!

So I went elsewhere..... and found at least 3 deals better than L&C's best.

L&C? Pile of pidgeon poo.

herbiesjp

HI Liam

What are the figures you need to look at for this place you have found?

Is the purchase price £155k? Do you need the £100% mortgage?

How much do you pay each month for the loan?

Are you a graduate? What is your occupation?

LiamM_2

The purchase price is likely to be between £150k - £155k, depending on negotiation (the vendor has not yet listed the property with an agent so I'd benefit from lower price as they have no agency fees to pay etc...

However, now that I can't secure the funding, it looks like she will put it on the market with a local agent.

I'm not a graduate (didn't go to Uni) so have no student loan to pay back - and I have been in full time employment since leaving college. I used to work for a national ISP and moved to Sheffield during the week from my parents home in Devon. However, my previous employer wanted me back so I moved back to Devon in August and my job is now "Business Development Director".

The Car Loan costs me about £160/month and I had budgeted c.£850-900 for the mortgage based on costings L&C gave me. I know it's steep but my monthly take-home pay is c.£1800 so I could do it if I cut back on my spending and take the hit for a couple of years before remortgaging. I know that the mortgage company won't take it into account but I'd alsot have someone lodging in the second bedroom and making a contribution towards bills etc... of c.£300/month.

I can possibly raise 5% of the purchase price from a relative - to opt for 95% LTV, but would prefer to take it on myself if I can.

LiamM_2

jonewer wrote: »

So I went elsewhere..... and found at least 3 deals better than L&C's best.

Am I allowed to ask (are you allowed to say?) where that was you went?

L&C were looking at Abbey and Skipton.

I'd have been perfectly happy if they'd told me at the outset that I was setting my sights too high. But they told me I could borrow £177k even when I told them and double checked the effect of the car loan. So now it's a bit of a downer! Especially since there are so few sub-£150k properties that are available and in a location that is safe to walk around at night!