The Bradburys, applied for a mortgage in late 2005 to help them buy their council home.
London Scottish Bank plc neither advised nor recommended the mortgage product to the applicants; such advice and recommendation being provided by the Bradburys' own mortgage broker.
This broker is regulated by the Financial Services Authority (FSA) and is required by the FSA to ensure that the mortgage is suitable and affordable for their clients.
It is not unusual in Right to Buy mortgages (on council properties) for parents to include their children in the mortgage because their income will often be used to make the mortgage payment.
In this case, the mortgage application we received from their mortgage broker included Lynn Bradbury along with her parents.
A full assessment of the three applicants overall income was also made on receipt of the mortgage application from the broker and we agreed with the Bradburys that they could comfortably afford the monthly mortgage repayments.
The mortgage was agreed predominantly on the basis of Miss Bradbury's income.
We were also aware of a monthly contribution from the Department for Work and Pensions to the Bradbury's mortgage repayments which we did not take into account when considering the combined income of the applicants.
Please note at the date of completion, Miss Bradbury was aged 33.
On that basis we were pleased to assist them to buy their council home.
Unfortunately, over time we started to experience mortgage arrears on the Bradbury's account.
We also became aware, subsequent to us making the mortgage advance, that they had taken out a further loan secured on their home.
In common with such cases, where customers start experiencing repayment problems, we arranged for the Bradburys to receive financial counselling from a third party with a view to helping them resolve their financial difficulties.
Despite our efforts to assist the Bradburys' and ongoing contact to try to regularise the position, payments continued to be missed on their account.
Consequently, we were left with no other option than to apply to Bradford County Court for a possession order. On 4 June 2007, we obtained a possession order which was suspended for 28 days, with the Bradburys' agreeing to make regular payments to us to meet their monthly commitments and also to clear their arrears.
We are pleased to note that the agreed repayment plan with Mr, Mrs and Miss Bradbury is working well and we continue to support our customers.
London Scottish Bank plc is regulated by the Financial Services Authority and applies responsible lending policies and is committed to treating its customers fairly. Consequently, we always ensure the level of repayments and term of any mortgage is appropriate to customers' personal circumstances.
Managing Director, Lending