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  • FIRST POST
    • Former MSE Paloma
    • By Former MSE Paloma 27th Aug 14, 11:31 AM
    • 526Posts
    • 245Thanks
    Former MSE Paloma
    MSE News: RBS fined £14.5m over mortgage advice
    • #1
    • 27th Aug 14, 11:31 AM
    MSE News: RBS fined £14.5m over mortgage advice 27th Aug 14 at 11:31 AM
    RBS and NatWest fined £14.5m after the Financial Conduct Authority found 'serious failings' in mortgage advice given ...

    Read the full story:

    RBS fined £14.5m over mortgage advice




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  • Edvaark
    • #2
    • 28th Aug 14, 6:14 PM
    RBS mortgage diligence is a long term issue
    • #2
    • 28th Aug 14, 6:14 PM
    Interesting to read that RBS has been brought to justice over its lack of diligence when selling mortgages. Back in 2007, shortly before black mortgage lending day, my Daughter ignored all our advice and was allowed to borrow 120% against an already over valued property leaving her almost penniless ever since. Needless to say she has had no sympathy from the RBS devil.

    Does anyone know whether she now has a strong case to seek compensation?
    • Thrugelmir
    • By Thrugelmir 28th Aug 14, 6:54 PM
    • 63,101 Posts
    • 56,015 Thanks
    Thrugelmir
    • #3
    • 28th Aug 14, 6:54 PM
    • #3
    • 28th Aug 14, 6:54 PM
    None at all. This relates to far more recent events. After the regulations changed.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • shortchanged
    • By shortchanged 29th Aug 14, 2:13 PM
    • 5,416 Posts
    • 8,597 Thanks
    shortchanged
    • #4
    • 29th Aug 14, 2:13 PM
    • #4
    • 29th Aug 14, 2:13 PM
    Interesting to read that RBS has been brought to justice over its lack of diligence when selling mortgages. Back in 2007, shortly before black mortgage lending day, my Daughter ignored all our advice and was allowed to borrow 120% against an already over valued property leaving her almost penniless ever since. Needless to say she has had no sympathy from the RBS devil.

    Does anyone know whether she now has a strong case to seek compensation?
    Originally posted by Edvaark
    Your daughter chose to ignore advice even if it was from yourself. Nobody forced her to sign that mortgage agreement.

    When are people going to start accepting responsibility for their own actions instead of looking for someone else to blame for poor decisions all the time?
    Why are we here?......................because we are not all there.
  • Edvaark
    • #5
    • 3rd Sep 14, 7:50 AM
    To Shortchanged
    • #5
    • 3rd Sep 14, 7:50 AM
    My point is that RBS pressured her to take a far higher mortgage than she needed, when the value of the property would not secure the size of the loan.
    • addedvaluebob
    • By addedvaluebob 3rd Sep 14, 8:43 AM
    • 462 Posts
    • 104 Thanks
    addedvaluebob
    • #6
    • 3rd Sep 14, 8:43 AM
    • #6
    • 3rd Sep 14, 8:43 AM
    A one liner from MCOB, which came into effect 31 October 2004

    Lenders are under a duty to lend responsibly: that is, they must be able to show that they have given proper consideration to a prospective borrower’s ability to repay the loan being applied for.
    • Thrugelmir
    • By Thrugelmir 3rd Sep 14, 12:28 PM
    • 63,101 Posts
    • 56,015 Thanks
    Thrugelmir
    • #7
    • 3rd Sep 14, 12:28 PM
    • #7
    • 3rd Sep 14, 12:28 PM
    My point is that RBS pressured her to take a far higher mortgage than she needed, when the value of the property would not secure the size of the loan.
    Originally posted by Edvaark
    The wonders of hindsight. When did people stop taking responsibility for their own decisions?
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
  • Snipereye
    • #8
    • 12th Sep 14, 6:36 PM
    • #8
    • 12th Sep 14, 6:36 PM
    I received a letter today im currently locked into a 5 year fix. Do you think i would be able to remortgage again because of this without the heavy charges that i usually have to pay? Thanks
  • Anna284
    • #9
    • 15th Sep 14, 5:26 AM
    Have A Little Heart!
    • #9
    • 15th Sep 14, 5:26 AM
    Banks & Building societies have a duty to give advice to an individual in line with terms of responsible lending... This means taking account of all factors in someone's finances AND making them aware of how borrowing may change in the future...

    As a 20-yr old I walked into a bank and stupidly put my trust in the apparently knowledgable advisor who had within the hour convinced into buying a 35 year mortgage, with advice on how this was manageable and a good way to borrow 110%... "Cash left for me to decorate". Utterly ridiculous on reflection, but in my naÔvet! he was the "expert". This financial burden did allow me to purchase a home I wanted at the time but gave me no scope for repairs or emergencies. I was earning a decent salary but the legacy of that mortgage haunts me still today in the form a credit cards and an overdraft (for living expenses!!!!)... leading to a DMP. I think the new test for mortgage applicants is absolutely correct and acts as some safeguard and peace of mind that the loan is within your means. Banks were haphazard in their lending but in the same way I attend a physio for an injury, a garage to service my car ... I (wrongly) assumed I had been given advice rooted in knowledge and experience of responsible lending
  • tvfreek
    I will choose my words with care.

    I often read posts on this board by people wishing to extricate themselves from any given situation. Ignoring the RBS issue for one moment there is often a lack of personal responsibility attached to these claims

    My personal opinion is that if you choose to be sold to by a bank of even an insurer for that matter you really have only yourself to blame.

    You wouldn't take your teeth out yourself or attempt to fix your own car but when it comes to a mortgage you suddenly becomes an expert until it goes breasts up. And then you post on here for some very late advice.
    Hi, weíve had to remove your signature. If youíre not sure why please read the forum rules or email the forum team if youíre still unsure - MSE ForumTeam
  • Christ21
    More RBS woes
    Interesting reading this about RBS
    I bank with Natwest and have my mortgage with RBS. In 2012/2013 I looked into additional borrowing for a house Id bought, to carry out an extension. I was advised (although it seems not properly now Ive complained), by my bank to lock down the main part of my mortgage (which was something like less than 70% of the house value) and then do the additional borrowing at the default rate (4% at that time). So when it came time (and after several conversations with RBS saying the default rates were available) I locked in my main mortgage (larger part) to a 5 year low rate. When It came time to do the additional borrowing, a few days later, I was then told by RBS because Id locked in the main part of my mortgage, I wasn't entitled to the standard rate and the only rate I could have is a 2 year fixed rate of 5.99%!! On top of that the 2 times I asked about additional borrowing, I had to have a full survey done, at the cost of approx £350! I am now paying approx £150 more a month for the additional borrowing.
    You can see why people don't do building work when the whole process is so complicated and over charged.Cant wait for all the deals to be up as Ill not use RBS again. Ive asked for the case to be looked into by RBS but I'm not holding my breath!
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