TSB's broken mortgage system

CDeacon

Hi all. My partner and I are first time buyers and applied for a mortgage with TSB on 9th February. Around 27th February, we were told by our broker (L&C) that we had been approved, that it was at the offer stage, but unfortunately (and somewhat alarmingly) TSB's new mortgage system wasn't working and they were unable to produce any documentation.


After a week or two of waiting, our broker kindly spoke to the estate agent confirming that the mortgage had been accepted, and to explain the situation, so as to give the seller some reassurance.


It's now 20th March and TSB's system is still not fixed. They are unable to produce any documentation, and are refusing to send any letters of comfort as it's "not their process", although by the sounds of things the issue will remain indefinitely as they do not have any expected timescale in which they are planning to resolve it.


The purchase process has now ground to a halt and we are anxious that the seller may become twitchy and pull out if we can't get things moving.


As a first time buyer, I'm interested to hear everyone's opinions on the timescales and whether, in their experience, they would consider starting an application again with another lender (and going through the underwriting/incurring valuation costs again). Any thoughts welcome. Thanks.

economic

Sounds like you should find another lender and ASAP. Looking online it sounds like TSB were a rubbish lender to begin with.

I would let the seller know and that it may take a bit longer so you know where you stand.

Once its all done, i would file a complaint against TSB asking for full compensation of costs incurred and more for time and stress. Go to the financial ombudesman as well. Before all that make sure you send it in writing recorded delivery to TSB the issues and that your purchase is time critical and you have no option but to find another lender given TSB have been completely lacking in even the basic of service one would expect. Not giving any sort of time or proper explanation is just stupid and waiting for nearly a month with not even an end in sight to the problem as well just sounds like they should not even be in the mortgage business.

parkrunner

CDeacon wrote: »

Hi all. My partner and I are first time buyers and applied for a mortgage with TSB on 9th February. Around 27th February, we were told by our broker (L&C) that we had been approved, that it was at the offer stage, but unfortunately (and somewhat alarmingly) TSB's new mortgage system wasn't working and they were unable to produce any documentation.


After a week or two of waiting, our broker kindly spoke to the estate agent confirming that the mortgage had been accepted, and to explain the situation, so as to give the seller some reassurance.


It's now 20th March and TSB's system is still not fixed. They are unable to produce any documentation, and are refusing to send any letters of comfort as it's "not their process", although by the sounds of things the issue will remain indefinitely as they do not have any expected timescale in which they are planning to resolve it.


The purchase process has now ground to a halt and we are anxious that the seller may become twitchy and pull out if we can't get things moving.


As a first time buyer, I'm interested to hear everyone's opinions on the timescales and whether, in their experience, they would consider starting an application again with another lender (and going through the underwriting/incurring valuation costs again). Any thoughts welcome. Thanks.

Surely that would be all over the financial news if that were true.

ToastyMarv

I am in exactly the same position as you CDeacon. I've gone through L&C to get the mortgage and it's coming through TSB but due to 'technical issues' the mortgage has not yet been issued. I have been told it's to do with not being able to produce the necessary documentation.

My time scales are very similar to yours where I began the process mid Feb. I was originally told on the 7th March that the mortgage should be in that day and here I am two weeks later and according to L&C, TSB are still having technical issues and can't provide me with details on a date of issue.

I'm at a loss as to what to do. Starting the application process from scratch with another lender is going to get really messy but I'm not sure how long to continue to wait for TSB.

Parkrunner, I have no idea how this isn't bigger news either, as according to my contact at L&C, all of their Clients getting mortgages through TSB are affected.

parkrunner

ToastyMarv wrote: »

I am in exactly the same position as you CDeacon. I've gone through L&C to get the mortgage and it's coming through TSB but due to 'technical issues' the mortgage has not yet been issued. I have been told it's to do with not being able to produce the necessary documentation.

My time scales are very similar to yours where I began the process mid Feb. I was originally told on the 7th March that the mortgage should be in that day and here I am two weeks later and according to L&C, TSB are still having technical issues and can't provide me with details on a date of issue.

I'm at a loss as to what to do. Starting the application process from scratch with another lender is going to get really messy but I'm not sure how long to continue to wait for TSB.

Parkrunner, I have no idea how this isn't bigger news either, as according to my contact at L&C, all of their Clients getting mortgages through TSB are affected.

In that case maybe it's just L&C who are having the problems with TSB and nobody else is affected.

CDeacon

Sorry to hear that ToastyMarv. Sounds like we're about a week ahead of you. I did get an email response from the CEO today who has sent my complaint to the Head of Customer Services asking her to respond promptly. I haven't yet had a response to my complaint submitted through the customer services form online, and customer services on Twitter have promised to look into it. Our broker has been 'looking into it' for the past month. I can't believe it's just us?


Our broker at L&C suggested today (a month later??) that it might be due to the address format of my employer. But if that were the case a) why am I being told about it only now, b) they've already approved the mortgage so why would that prevent them from sending the mortgage deed; and c) it sounds like an easy fix if we know exactly what about it their system doesn't like.


He said if that were the case and we tried to amend my work address so it suited their system, they would still need to do another valuation etc. Which I've said just to go ahead with since I assume I can get some sort of compensation for a pointless second valuation. However, we still don't know exactly which bit of the address is not recognised, and how it can be rectified...


All in all completely let down and at a loss. If no further responses by Friday we'll have to start another application with an alternative lender and seek compensation.


Hope yours gets sorted too.

wantonnoodle

Would it be worth calling TSB direct and getting a response from them? To still not be working after a month sounds fishy to me, and I would be questioning if its an issue with L&C. From many of the reviews I've read, they're only a good broker if your case is straightforward, and can't deal with complex cases very well. I'd be questioning if they were using "system down at the bank" as an excuse to cover their own incompetencies.

May be worth a call.

CDeacon

Thanks for the input. We did think that at some point. We'd been speaking to L&C regularly and they were always responsive and patient with our endless chasing, although I have been speaking with some more people at TSB today and they have admitted that the fault is at their end; that the mortgage was indeed approved a month ago but that they still can't produce paperwork. I will be following up with the CEO and Head of Intermediaries today and tomorrow.

kingstreet

The problem seems to be the old system.

Cases input on or after 23 February were done on the new MSO system which is like Nationwide's rather than the old LBG-Halifax based system.

We're fortunate we had no old cases.

ToastyMarv

I've been told today by L&C that the issue at TSB's end has now been fixed and things are moving again with my application.

I'm not sure if that means it's fixed for everyone or if I've just got lucky. As kingstreet said, maybe TSB have had to go through a manual process of moving applications from an old system into a new one which is why it's taken so long.

There is now apparently a small problem with the valuation but that should be fixed soon and then hopefully the offer will come in.

I'm still holding my breath for it to actually happen, but it does seem like there has been some movement for me and it should come in soon. I hope you can get your application moving again soon CDeacon.

Also just for anyone else reading this, I've had no problems with L&C. They have always been very helpful and got back to me every time I've chased for an update. It does seem as if the problem is entirely at TSB's end.

CDeacon

I agree, ToastyMarv, L&C have been great, although at some point it's easier just to talk to someone direct.


Good news yesterday: I spent some time on the phone with the Head of Intermediaries and also emailed the CEO directly, who responded promptly. I think the fact that we went to the top rather than through a customer services loop really helped, and I must say TSB went from zero to hero in my estimation, because after those conversations it really seemed like action was taken immediately, rather than being consistently fobbed off.


At 1:30pm I had a call with the Head of Intermediaries who was extremely kind and apologetic, who confirmed that they had 're-keyed' my application, and would wait for up to four hours for it to finalise. Then around 4pm L&C got in contact with the mortgage offer!


We are obviously delighted it was fixed so quickly and would have preferred not to have to go the route we did, but I'm glad we were a little troublesome as they really did seem to make it their priority at that point.


They have also refunded my valuation fee as a gesture of goodwill.


Good luck ToastyMarv, I'm certain yours will arrive really soon now.