Has anyone else heard of this happening?

lhoney

So... my fixed rate term ran out, I went to do an application for a new rate online (Lloyds). It wouldn't let me, it came up with an error and gave a variety of reasons why, none of which applied to me. I tried again a few more times and then tried twice to do it over the phone, but gave up each time (since I was on hold for 45+ minutes both times and had things to do). I filled in a form online requesting an appointment at my local branch to discuss it, stating I could only make from 3pm or later. I got a call the next day saying they have no availability at that time ever, but I could just apply online or on the phone. I said I couldn't do it online because it kept coming up with errors, so she went to check why and came back saying it was because I was on a "local lend a hand scheme", but that I could call them when it's more convenient and apply over the phone instead. I was a bit confused by this, but said okay and then phoned them yesterday evening.

They said the same thing on the phone, and the man I spoke to didn't really get it. The thing is, I've never been on this local lend a hand scheme. I got a standard mortgage on a fixed rate term in 2014 and put down a 10% deposit. At the time I remember seeing a poster for it in the branch, and I asked the woman there what it was (I think it was something like you put down 5% deposit, then the government or local council put some in, I think around 5-15%), but she said we weren't eligible for that since my partner wasn't a British citizen at the time and we were applying together. That's the only time I ever remember a mention of the scheme. The man I spoke to last night sounded a bit panicked and kept having to put me on hold while he spoke to someone about what to do. He believed I'm not supposed to be on that scheme, and there's no mention of it in any of the paperwork or contract I have from when we got the mortgage. He said they checked the land registry and things and ended the call saying it has an action date of the 7th of Feb, and it should be rectified by then, meaning I should be able to apply for a new rate online like I'm supposed to.

He said it likely would never have been spotted if I'd not tried to apply online and been blocked. I could have applied for deals on the phone or in branch for years and never known anything about it. It worries me that it would have said my house was on a local lend a hand scheme until the time I sold it, and I'm not sure what the repercussions would have been. Would the government have believed they owned part of my house? Has this cost me any extra money that it shouldn't have? I'm not sure the mistake could have been as simple as them ticking the wrong box somewhere since surely the contract we signed would have mentioned it, and I think it would have been a bit more complicated than a standard mortage.

foxy-stoat

Never heard of a local lend a hand, Lloyds do a lend a hand mortgage where you trick a relative into depositing a sum of money with them and they use that as a guarantee and you get a better LTV but a higher interest rate than normal.

Best try and get an appointment with an adviser in branch - now would be a good time to read what you actually signed for the mortgage and know exactly what mortgage you have and the terms of it.

Report back

TrickyDicky101

Phone up Lloyds and make it clear you wish to raise a complaint (be absolutely clear you are raising a complaint) and explain the circumstances. It is likely to concentrate their minds on properly investigating and solving your issue.

If you fail to get satisfaction after a final response from Lloyds or after 8 weeks (whichever comes first) you can raise your complaint with the Financial Ombudsman Service (FOS).

muhandis

Exactly this. Raise a formal complaint. I myself would make a written complaint on their online form https://secure.lloydsbank.com/retail/contact_us/how-we-can-help.asp but a phone call is fine too.

You've done all the legwork they can expect you to do. Unfortunately, sometimes the only way to get them to do something and give you a proper answer is a formal complaint. Because it costs them a lot of money when things reach the Ombudsman, their complaints department is well staffed, well trained and have the power to actually get to the bottom of things and give you a proper answer or take corrective action to resolve the issue. And for issues that caused moderate to severe trouble, more often that not they offer proportional compensation without any prompting.

TrickyDicky101 wrote: »

Phone up Lloyds and make it clear you wish to raise a complaint (be absolutely clear you are raising a complaint) and explain the circumstances. It is likely to concentrate their minds on properly investigating and solving your issue.

If you fail to get satisfaction after a final response from Lloyds or after 8 weeks (whichever comes first) you can raise your complaint with the Financial Ombudsman Service (FOS).

wantonnoodle

I agree with the complaints route. If you end up going on to the SVR due to their systems wrongly preventing you from taking a new rate, it may be possible to get the difference refunded by the complaints team. As a previous poster stated, the complaints teams tend to know their stuff and have the authority to process refunds/credits such as this.

lhoney

Thank you, everyone. I'll definitely make a complaint then. They said I should call them on the 7th to check that the "local lend a hand" scheme error is removed from the mortgage account, or I can try to apply for a new deal on their website before then to check (since it will only work once the status is removed). They said I can't change to a new deal until then. I don't suppose they would owe me too much in terms of money because of that, but it would be good to get an answer as to WHY our account says we're scheme, especially when they specifically told us we weren't eligible, there's no mention of it anywhere on the contract we signed, on the terms and conditions paperwork, or on any of the annual statements they sent us. It just doesn't make any sense.

Thrugelmir

lhoney wrote: »

but it would be good to get an answer as to WHY our account says we're scheme, especially when they specifically told us we weren't eligible,

Could be as basic a tick entered on a screen where it shouldn't have been. Human error is nothing uncommon.

lhoney

I don't think it could have been as simple as that though, as from what I've discovered, there was only a limited number of mortgages allowed on the scheme at the time since the budget allowed for it was limited. Signing up to that wouldn't haven been straightforward as it would have involved extra checks and assessments.