Mis-sold Mortgage Claims > Mortgage News
Lenders profit at consumers expense as many are left unable to borrow
Fri, 06 Aug 2010
This week has seen news from lenders which shows a return to profit running into billions. Barclays has today announced pre-tax profits of £3.95 billion, for the first half of 2010 and claim that Woolwich lending is up 13%. This follows other announcements of profits from RBS, HSBC and Lloyds Banking Group.

It is still clear that many consumers are still unable to borrow as lending criteria remains tight and lenders are "cherry picking" borrowers.

RBS which is a semi-nationalised bank reports that its overall lending was down 3% on 2009 this is in contrast to Woolwich. Barclays which owns Woolwich, states that its new lending is at an average of 51%, loan to value . This is a clear example of the caution and apathy towards lending. Many existing borrowers remain on high rates and are unable to remortgage due to income multiples being significantly lower than when they took out their original mortgage,they also do not having sufficient equity in their property to meet the lenders appetite and risk assessment.

Lenders approach now is a stark contrast to their race for market share before the economic downturn which saw the downfall of lenders such as Northern Rock in 2007. Many borrowers are now seeking redress,mis-sold mortgages claims are increasing despite the Financial Ombudsman Service (FOS) announcing a small decrease in direct consumer complaints.
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