FCA regulation

potatoefeet66

Dear all. I have been advised to ask advice from an independent mortgage expert, following the FCA request for evidence of a breach in regulation. They have advised me that my evidence has now been passed to their team who regulate this bank. 

A Kfi was issued for a reduction £138k satisfying bank LTV criteria, however it has now become clear that the application under the kfi ref was for an increased figure £142131.00, greater than 1% stated in kfi, at any rate out side of existing contractual LTV criteria. 

It was not level of lending agreed in kfi and was not level of lending required. 

Application was formally declined in letter stating failure on credit scoring. Bank control shows good score normal case. 

So given FCA request I’m wondering if any regulatory rules have been breached. 

K_S

@potatoefeet66 Would you mind giving a bit of background? It's not clear to me what the issue is and where the FCA comes in?

Are you saying that the illustration you were sent indicated a loan amount of £138k but the application went in for £142k? I'm not sure what you mean by "contractual LTV criteria".

potatoefeet66

K_S said:

@potatoefeet66 Would you mind giving a bit of background? It's not clear to me what the issue is and where the FCA comes in?

Are you saying that the illustration you were sent indicated a loan amount of £138k but the application went in for £142k? I'm not sure what you mean by "contractual LTV criteria".

A mortgage was already existing with LTV criteria of 60-40%. Lender issued kfi at point of application of 138k however an application was submitted and declined for a higher figure outside of bank criteria. 

I asked the FCA about this and hence their request and acknowledgment they have passed documents supporting a breach to their team who regulate lender. 

RO1993

Who applied for the higher amount?

potatoefeet66

potatoefeet66 said:

K_S said:

@potatoefeet66 Would you mind giving a bit of background? It's not clear to me what the issue is and where the FCA comes in?

Are you saying that the illustration you were sent indicated a loan amount of £138k but the application went in for £142k? I'm not sure what you mean by "contractual LTV criteria".

A mortgage was already existing with LTV criteria of 60-40%. Lender issued kfi at point of application of 138k however an application was submitted and declined for a higher figure outside of bank criteria. 

I asked the FCA about this and hence their request and acknowledgment they have passed documents supporting a breach to their team who regulate lender. 

Kfi was not for illustration purposes it was figure of 138k a reduction to outstanding balance agreed by lender to meet LTV criteria. 

Lender submitted application with higher figure outside of bank criteria. 

potatoefeet66

RO1993 said:

Who applied for the higher amount?

The lenders advisor 

RO1993

potatoefeet66 said:

RO1993 said:

Who applied for the higher amount?

The lenders advisor 

I don’t think I follow this at all.

So if a mortgage exists, are you remortgaging?
Are you using a broker? Maybe you could bullet point the steps to help understand 

Nearlyold

RO1993 said:

potatoefeet66 said:

RO1993 said:

Who applied for the higher amount?

The lenders advisor 

I don’t think I follow this at all.

So if a mortgage exists, are you remortgaging?
Are you using a broker? Maybe you could bullet point the steps to help understand 

A thorough read of the OP's previous threads on what appears to be the same mortgage (from 2005) will get you up to speed.

ACG

RO1993 said:

I don’t think I follow this at all.

Your not alone!

potatoefeet66

This was a miss use of a process. That lender failed to disclose or correct. 

Unfair treatment and not in anyway in the customers interest. 

That’s in the rules. 

chanz4

they also dont have to lend