Mortgage eligibility for family member of an EU citizen

[andes6]

Hi all,

I am a family member of an EEA citizen , and have residence card of an EU national family member valid for five years. Both of us have been working in the UK for more than a year, and have long term jobs.

We jointly applied for a 85 % LTV (15 % deposit)mortgage, with myself being the first applicant. We paid a product fee,and our application was submitted after initial verifications. The mortgage advisor got back to me last week stating that there is a problem with my residence status and queried my visa status and thereby residence eligibility for a mortgage.

I explained him clearly than am a non-EU spouse of an EU citizen exercising EEA treaty rights and should be eligible for a mortgage like other EU citizens. . I also sent him links of websites suggesting the same. Yesterday, he called back and told that my residency is not a problem now, but since I do not have unlimited leave to remain or permanent residency, we will not be eligible for a 15 % deposit mortgage, and have to furnish a deposit of 25 %.

We are hugely disappointed as this is totally unfair, and it implies that the Bank is treating neither me nor my wife at par with UK. EU residents. We had disclosed both our residence status in the UK from the start, and were given a promise of 15 % deposit mortgage.

I would like to know whether we are eligible for the same mortgage rates/ types/ products that are available to British citizens and people who have unlimited leave to remain? On the Bank's website it is clearly stated that EEA applications should be treated on the same line as British citizens. Would that not apply to our joint application? Could you please also let me know if there are any agencies where we can lodge a complaint?



I will be grateful for your advice.

Thanks so much.

A

I do not know where to post this question, but do apologise if it is in the wrong section

[nonspecifics]

One of my friends has a similar sort of problem.

He opened a bank account. Then the bank froze his account with his money inside it.

They say his non-EEA passport is not acceptable as identification without a valid UK visa.

They then listed all the acceptable visas. Every one of them is issued under UK immigration rules.

As he is in the UK under the EU Directive he would never be eligible for any of the visas or indefinite leave to remain ( permanent residence is not listed as acceptable either.)

The bank defended their attitude saying they have no choice; it's the money laundering rules according to the ( Financial Services Authority) FSA.

The FSA said they do not state the exact documents. Financial institutions have discretion on what they accept as evidence, as long as they make reasonable checks.

Here is the bit most relevant to you: they also said banks must treat customers fairly and not discriminate.

My friend was advised to write to the bank with a letter heading "Formal Complaint" giving the bank a chance to resolve this issue through their complaints procedure.

The bank must resolve it or issue a letter saying you have exhausted their complaints procedure and the issue could not be resolved satisfactorily.

You can then make a complaint to the Financial Ombudsman.

See here for more information: http://www.financial-ombudsman.org.uk/


Unfortunately, it will probably take several months before they investigate your issue due to their high workload.

Also, there could be an issue of facial discrimination. If you suspect you are a victim of direct or indirect facial discrimination you can write again and state you suspect you could have been a victim of indirect facial discrimination and demand an explanation of your treatment and the bank must legally justify how they have not discriminated against you.

[andes6]

thanks a lot for your reply.

I am in the process of negotiating with bank, lets see what happens!

cheers

A

[pinkpanter]

andes6 and nonspecifics,
I am now worring as I also have a plan to get mortgage after getting PR (I hope as my application is pending). So, you mean bank might reject mortgate/loan application on the ground that someone have PR on EU rules not immigration rules. I had a 20k loan on RC status and my bank didn't object my EU status.

I think it is depend on the bank i.e. my bank is Natwest and they accept my loan application as EA family member.

[andes6]

You are right Pinkpanter! it certainly depends upon the whims and fancies of these banks and it appears that they do not have a a clear cut regulations.

So, please be explicit about your status when you are going to your bank. If your bank is not in position then approach another like Santan***

In my case (Nation**** bank) they agreed initially and went back on their promise later after wasting 4 weeks


good luck

A

[pinkpanter]

Thanks andes6,