Lenders accused of dirty mortgage tricks

 

Tuesday, Apr 14,2009, 11:46:00 AM   Click:

Halifax, Britain's largest lender, has been accused of sub-clients properties when they come to Car, forcing them to more expensive deals.

Brokers say borrowers May see as much as 40% wiped off the value of their home, even if prices fell on average by 21% from their peak in August 2007 in Halifax, according to his own home-price index.

The average reduction of assessments of the borrowers are no longer eligible for the lender to best offers. Halifax 5.29% for the cost of its five-year fix if you have equity of 5% or less, compared to only 3.99% to 25%, a difference of £ 2600 a year on a £ 200,000 interest only ready.

The move is in the midst of growing evidence that lenders, while purporting to offer tenders following government pressure, are in fact to impose conditions even devious means "good" borrowers are not eligible for best rates .

HSBC said last week it would commit £ 1 billion in loans to people with deposits of 10%, the first time to assist buyers in the market. This was one of 15 billion pounds sterling, it has already committed to make this year and has already offered a market leader in the fixed 3.99% over five years.

However, a reader complained Sunday Times, she was rejected, despite the 40% of equity, because it was not 75% of the value of its mortgages to savings - £ 160,000.

Neil Timothy James Avery, an adviser, said: "We are more than what the lenders are saying and what they do is very different. The result implies working Halifax is the real estate market to its advantage. "

Down-evaluations

Thousands of customers have to Halifax on cheaper deals than two years immediately before the credit crisis in 2007 are now applicable to the bank for a transfer deal. "

However, brokers were alarmed to see the value of clients' homes in Halifax online assessment system - which is attached to her house-price index - slashed by tens of thousands of pounds in a matter of days .

The bank is offering the transfer of existing customers at higher rates.

Avery cites the case of a client living in a house in London. "On Friday, depending on the value of their property to the computer system of Halifax was £ 1.3m. He was already down 19% on what the customer to pay for the house two years ago, "he said.

"Halifax has published its new assessment on Tuesday, three days later. The house has a value of £ 965,000 - a correction of 25%. That means the couple pay £ 290 per month more, or £ 14,000, over the next four years, "said Avery.

Giles and Nikki Holland, of Earlsfield, south-west London (left), also customers of Halifax, received an automatic £ 400,000 - £ 100,000 less than where they are given by their estate agent. The difference will add 2000 pounds per year reimbursement.

Avery said: "Halifax has a relatively good supply Car door to people who are in the negative - but it does not have its own evaluation system may be pushing people into the red in the first place."

Halifax said: "We are taking a cautious approach to the use of evaluation and they are closely monitored against the standard assessments. The model adjusts dynamically to reflect the changing market as they occur to ensure the assessment is accurate. When intermediaries and their clients want to appeal the assessment, we will address this issue on a case by case basis. "

Bank of Scotland, part of banking group Lloyds like Halifax, took steps to ban customers who subscribe Car People trafficking offers free legal fees and assessments appeals against assessments altogether. Those who want the option of paying the costs, the lender said. Melanie Bien at Savills Private Finance, said: "We believe this will be a disincentive for borrowers disputing the value of their property."

Hidden conditions

Katrina Murray, 36, of St John's Wood, London, has been rejected for five years HSBC face to 3.99% despite an impeccable credit record, the required 40% deposit and £ 15,000 to savings - because she wanted the agreement on interest only.

The bank said it would need 75% of the loan value of savings to qualify - £ 160,000. HSBC said: "We have this very strict. Those who want to take out a loan interest must have a vehicle, the reimbursement of support. "

However, Murray said: "Why did they impose at the last minute, and why is it not announced their conditions? What sensible person would have this amount of savings in this market if they could pay their mortgage more quickly? This practice has resulted in terrible loss of time and effort for me. "

Well said: "Lenders are increasingly more difficult for people to borrow money on interest only. Whereas during the bubble market of the goods they May not have relied on the clauses in contracts, such as the need for a refund of the vehicle, they certainly do now. "

You can not repair your ditch

Meanwhile, the national does not allow existing customers to switch to cheaper fixed, even if they are willing to pay the penalty, depriving thousands of pounds of savings.

For example, in March last year, the domestic supply is three years to 5.85% fixed. Today, the best prices for three years is 3.98%. A borrower with a loan of £ 200,000 could save £ 2485, even after the payment of 2% early redemption penalty and an arrangement fee of £ 995, if the company permits the existing customers.

Richard Morea of L & C, the broker said: "It is disappointing that Nationwide customers will not see the same opportunities to take advantage of cheaper mortgage rates that customers with other donors."