Lenders selfishly pick and choose what TCF means

TCF is a daily consideration for all brokers but I have an issue with how lenders seem to decide what constitutes meeting the initiative to suit their own ends, even if it disadvantages borrowers.

I have a client with a BM Solutions mortgage. It was arranged two years ago for a converted flat on an 85% LTV self-cert basis. With arrangement fees and the current valuation it ended up more like 88% LTV.

The deal has expired and we were looking to stay with BM Solutions under a product transfer arrangement. She had a 4.99% fixed rate and wished for another competitive fix.

She is now in a position to fully certify her income so a mainstream product seemed appropriate.

But when working through the product transfer online the case was rejected so I rang the lender to discuss the problem.

I was advised that because the original mortgage was self-cert she would only be eligible for another deal of this type. But since the lender now only allows 75% LTV self-cert cases she was ineligible and had to stay on its SVR.

Bearing in mind the property and client are the same, no extra funds are required and she is more than able to prove her income, there has been no increase in risk to the lender at all. So how can BM Solutions deem that it is meeting the TCF initiative in this case?

I am left wondering what guidelines the lenders have for TCF and how loud clients and brokers have to shout before they take a long hard look at themselves and abide by its principles.

Dave Finch


DF Independent Mortgage Associates

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