Credit Challenged home LoansLoan avoidance of housing loans
Telegraph Money has been writing monthly about borrower who took out a mortgage before the new regulations came into effect and now have difficulty pulling home, re-mortgaging or changing to a lower interest rates. There are many reasons: some want to move home, but creditors refuse to carry over or "port" their loans.
Other are on the high variability of their lenders' standards set and are refused a better business. And then there are the borrower in the 1940s and 1950s who are said to be "too old". In rejecting the new agreements, bankers argue that borrower do not fulfil the new affordable conditions. That may be the case, but there is no obligation for a bank to impose the rule on an established borrower.
However, creditors ignore them, and since they are "leadership" and not regulations, the FCA is helpless to act. There should be no testing of affordable loans to those already established who do not wish to make substantial changes to their credit, such as lending more or extending the maturity. That' because they took out their loans when the regulations were looser.
However, creditors are strikingly disregarding this, despite strong warning from the regulatory authority. They do not want to lend more or prolong their time. Often they want to cut and flatten their debts, but creditors have made the absurd mistake of "not being able to buy it". In order to offend the violation, they are often compelled to foot paralyzing charges to cancel their loans prematurely.
Others do not want to move but are dependent on their lender's high floating interest rates and are warned that they cannot "afford" a lower cost credit. Another target is older borrower whose loans will go into retiring - an area where creditors had to crack down last year.
Borrower with very favorable loans are also goals - they are not lucrative for the bank they want to get off the book. How do the creditors feel? Although the borrower has made an appeal to top managers, the borrower's choice is maintained, indicating that the problem goes far beyond the subscription area.
Barclays, for example, has said that in order to borrow in a responsible manner, it performs an affordable check for all borrower. However, some creditors are incoherent in their reasoning. Subsidiary employees and internal mortgages advisors tell clients that there should be no problems transferring their loans or mortgages, for example, but insurers reject the request for reasons of affordable pricing.
These cases will lead diligent borrower who are planning in advance to think that they will have no problem only to find out later that their request was denied. George Panayi, his spouse and their four kids moved from their 665,000 pound home in Chingford, Northeast London, to Leigh-on-Sea in Essex in February.
They found their house of their dreams and made an offering of 475,000 pounds, which was taken. Mister Panayi, 41, wanted to transfer his 270,000 NatWest pounds to the new land. His plan was to cut his loans - a two-year fix at 1. 95pc, which he took out in December 2013 - to £160,000.
Calling NatWest and requesting the dock. An underwriter was told why the hypothec had to be authorized, and the supervisor arranged an interview with a financial advisor. "Of course this is good newsworthy for us, but we had to go through a great deal and almost lose our house of dreams.
In March 2013 Dawn Bryan purchased a house in Lesotho. It took out a 120,000 10-year 10-year debt with Leeds Building Society at 4.29pc. Ms Bryan brought her home to the £300,000 quotation mark and told Leeds about the scare. They asked to transfer their now £113,000 credit to a new home in Mansur.
Leeds shocked, however, by rejecting her proposal. "and I' ve never failed a single payment," Miss Bryan said. Adding offense to the breach, Leeds insists on imposing a prepayment fine of more than 6,000 on Miss Bryan - a savage punishment for having demanded that the bausparkasse prematurely terminate the credit.
"Miss Bryan's case appears to have seen a significant shift in affordable pricing that would have prevented the current mortgages from being moved to a new property," he said. The five-year interest fix ended in July last year. We' ve been writing about a number of large creditors interested in exempting borrower from very low interest charges, older borrower and those who no longer consider them eligible by unjustifiably adopting new affordable pricing policies to reject portfolio inquiries.
The company won an £420,000 bid for their home and found their perfect home for £380,000. They asked in October to porter their mortgages, which had dropped to 155,000 pounds. "Never have we ever failed a mortgages and would increase our capital in the real estate, but our application was rejected," Ms Simpson said.
on a high interest bracket. The UCB is locked for new lending, and although it gives current clients the opportunity to repay their mortgages, interest levels are very high. The best two-year interest fix is 5.19. Nationalwide' default is 3. 1999pc and it has two years of trackers dealing for 1.44pc.
"However, I have an irreproachable record of payments and an outstanding creditworthiness. Jones was bogged down in Santander's floating reference set. Though they had a great deal of equities, Santander declined to message them any different charge than the reference point regular charge of 4. 74pc, and argued that they had too much indebtedness elsewhere.
Then they were given a 1.99 piece offer.