The Peterborough Evening Telegraph
Apology after mortgage delay
A COUPLE are to get their legal fees reimbursed after encountering difficulties when they tried to buy their dream home through a councilbacked mortgage scheme.
Guy Charnley (31) and Laura Nichols (26) wanted to buy their first house together using the Local Lend a Hand Scheme set up by Peterborough City Council to offer 95 per cent mortgages to get first time buyers on the property ladder.
But after being accepted in principle in January for a 95 cent mortgage by Lloyds TSB, which manages the scheme, they faced lengthy delays over the next 12 weeks and ended up paying out £1,500 in legal fees.
And on Friday, when they were due to exchange contracts to buy the £130,000 home in Thorney, the bank suddenly announced they could not have a 95 per cent mortgage.
The pair, who are living with Laura’s parents in Farcet, feared the two bedroom cottage they had set their hearts on had slipped away.
But after vigorous complaints, Lloyds TSB offered to refund any extra costs the couple had incurred plus a 90 per cent mortgage.
Laura, who works in marketing for Ideal Shopping Direct, said: “This happened during the build up to our wedding - it should be a happy time but instead I was coming home and bursting into tears every night.
“I’m normally so organised but I’ve left everything for the wedding until late because of this.”
After being accepted for a 95 per cent mortgage, Laura and Guy
PICTURE: DAVID LOWNDES found a house and had drawn up much of the paperwork but were then told they could only get a 90 per cent mortgage and that the bank valued the house at £115,000 – £5,000 under the agreed sale price.
The couple said the reasons for the reduction were never explained to them.
Lloyds TSB said the reason they had been refused a 95 per cent mortgage was because of past county court judgements (CCJS) taken out against Guy. But the firm apologised for the delay and promised to investigate their case.
A spokeswoman said: “We recognise mistakes have been made in the communication and the processing of this mortgage application, but we cannot agree to lend a mortgage of 95 per cent of the value of the property on this occasion.
“They have now confirmed they would like to proceed on the 90 per cent basis. We will be conducting a full investigation and we will offer to reimburse them any reasonable costs they have incurred directly because of any mistakes we have made, plus a payment for any distress and inconvenience caused.”
Council leader Councillor Marco Cereste said: “We set up the scheme for 95 per cent mortgages. There may be a perfectly legitimate reason but if we’re not getting them I want to know why.”