Saturday, February 14, 2009
Lenders advertising unavailable deals to appease government
Phantom mortgage deals are being offered by lenders under pressure from the Government to help borrowers, claim angry brokers. The loans appear available, but when borrowers apply, they are turned down. Several banks and building societies, including Abbey, Cheltenham & Gloucester, Halifax, the Post Office, RBS NatWest and Yorkshire Building Society, advertise mortgages with only a ten per cent deposit. But brokers say that borrowers are being rejected even when they have an excellent credit history, stable job and high salary. Brokers say there is no apparent method behind the rejection of applicants. They also warn that lenders are 'down-valuing' properties, effectively reducing the amount that can be borrowed.