The RBS computer says Yes, but RBS says No.

Posted on 26 February 2008 by Ray Boulger

1 comment(s)

Royal Bank of Scotland advised early this afternoon that all their 100% LTV deals would close at midnight tonight and at the same time the maximum LTV on their One Account mortgage would be reduced from 99% to 95%.

They also said that AIP (approval in principle) decisions above 95% LTV will still be available through their website, rbsip.com, for a while, but as AIPs are only valid where a corresponding supporting product is available any application based on an AIP produced above 95% LTV will be subsequently declined, despite a positive AIP having been received.

Confused? You might well be. RBS must be absolutely desperate to come out of the 100% market if they couldn’t wait until they could update their web site so that it doesn’t mislead by giving approval for cases they are not prepared to do! It might even be non compliant as the FSA requires all lenders to be “clear, fair and not misleading” in all their financial promotions. It seems to me you can’t get much more misleading than having a web site which says the lender will accept an application but then declining it because they couldn’t get their act together in terms of co-ordinating their lending policy with the information on their web site.

 

Categories: Mortgages, Regulation

Michael Parker says:

I agree that this is a key issue - so much is happening in this sector.
Posted on 27/02/2008 17:48 by Michael Parker

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