Apol­ogy af­ter mort­gage de­lay

The Peterborough Evening Telegraph - - Uk & World Update - By BEN TRUSLOVE ben.truslove@pe­ter­bor­oughto­day.co.uk @Et­ben­truslove

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.”

up­set: Laura Ni­chols and Guy Charn­ley who are liv­ing with Laura’s par­ents in Farcet.

su­per­star DJ: Gaby hopes to raise more funds through the help of Of­fi­cial Club Nights which is do­nat­ing a per­cent­age of Fri­day’s door prof­its from Halo to Tackle Africa.

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