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NatWest is accused of reneging on BTL loans

An adviser has hit out at NatWest, saying it reneged on nearly 100 buy-to-let mortgages despite promising to honour applications.

Henderson Ponsford and Co director Doug Ponsford says that initially NatWest was lending 85 per cent loan to value based on a day one remortgage product.

Ponsford applied for the product on behalf of almost 100 clients who were buying properties from sellers, most of whom were facing repossession.

The lender then changed its policy in May and offered loans of 85 per cent of the purchase price, which in most cases was significantly lower than the property value.

But in emails to Henderson Ponsford and Co, seen by Money Marketing, NatWest promised to honour the applications submitted by May 9 based on the old policy.

Ponsford says he and his clients were then left waiting for the mortgages to complete for six weeks while being assured by the lender that they were being processed.

Ponsford says: “Some vendors were withdrawing from sale or in some cases going to repossession as the sellers had no means of meeting their mortgage commitments.

“Some of my clients are in their fourth month awaiting NatWest to complete on their purchases.”

Ponsford says on June 19 NatWest told him that it would not complete on the applications based on the old policy.

He says: “The bank has clearly breached the treating customers fairly policy, let alone having treated everyone concerned in a totally unethical manner.”

NatWest would not comment on the specific allegations but a spokesman says: “We have taken a very client-focused approach that may not necessarily satisfy Mr Ponsford’s view of the situation but certainly represents a fair and balanced approach to lending. We are writing, as Mr Ponsford requested, to all his clients with details of our offers.”

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