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  • FIRST POST
    • Mustafa786x
    • By Mustafa786x 6th Jan 18, 12:28 PM
    • 3Posts
    • 0Thanks
    Mustafa786x
    Nationwide refused loan! Appeal process
    • #1
    • 6th Jan 18, 12:28 PM
    Nationwide refused loan! Appeal process 6th Jan 18 at 12:28 PM
    Morning guys,

    Just been to the bank and went through a loan process..

    Quick background info

    Income : £2100 1st job
    £900 2nd job

    £3000 combined

    Current expenditure monthly
    Loan 1 8.9% £160
    (£4,500 remaining 22 months)
    Loan 2 : £225 9.9%
    (£5,200 remaining 40 months)
    Morgage: £430 2.19%
    (£130,000 remaining 38 years)
    Credit card: £2,000

    I was looking to consolidate both loans into one,

    Got a quote on the screen
    £440
    3.9%
    60 months

    Applied... refused.

    Both me and the advisor was surprised,
    No missed payments EVER!
    3.9% is there lowest rate offered
    Very very Strange
    They called the loans team who said I will be borrowing more than £25,000 but that wasn't incorrect as I was borrowing in total £24,000

    Seems the system thought I was borrowing an additional £24,000 on top of my 2 other loans which would be over £25,000.

    Advisor explained on the phone that in total I would be borrowing £24,000 not a new loan for £24,000.

    Advised to send a appeal, been sent today via email.

    Anyone had experience on the appeal process?

    Advisor stated income is OK
    The new loan would only be
    £60 a month more than existing..

    Appeal process?
Page 1
    • DCFC79
    • By DCFC79 6th Jan 18, 12:35 PM
    • 30,642 Posts
    • 19,369 Thanks
    DCFC79
    • #2
    • 6th Jan 18, 12:35 PM
    • #2
    • 6th Jan 18, 12:35 PM
    Its an extra loan, the lender has no idea you plan to do as you plan nor can they guarantee you will pay the 2 loans off.

    Give another lender a try.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • YorkshireBoy
    • By YorkshireBoy 6th Jan 18, 12:35 PM
    • 29,694 Posts
    • 17,648 Thanks
    YorkshireBoy
    • #3
    • 6th Jan 18, 12:35 PM
    • #3
    • 6th Jan 18, 12:35 PM
    Income : £2100 1st job
    £900 2nd job

    £3000 combined
    Originally posted by Mustafa786x
    2 part time jobs? Or a full time job and a secondary income from evening and weekend work?
    • Mustafa786x
    • By Mustafa786x 6th Jan 18, 12:39 PM
    • 3 Posts
    • 0 Thanks
    Mustafa786x
    • #4
    • 6th Jan 18, 12:39 PM
    • #4
    • 6th Jan 18, 12:39 PM
    One full time job
    One part time
    • Mustafa786x
    • By Mustafa786x 6th Jan 18, 12:40 PM
    • 3 Posts
    • 0 Thanks
    Mustafa786x
    • #5
    • 6th Jan 18, 12:40 PM
    • #5
    • 6th Jan 18, 12:40 PM
    It's a consolidation loan
    • YorkshireBoy
    • By YorkshireBoy 6th Jan 18, 12:47 PM
    • 29,694 Posts
    • 17,648 Thanks
    YorkshireBoy
    • #6
    • 6th Jan 18, 12:47 PM
    • #6
    • 6th Jan 18, 12:47 PM
    It's a consolidation loan
    Originally posted by Mustafa786x
    Is it? How so? You have £11,700 of debt listed. Why do you need a £24,000 loan to consolidate £11,700 of debt?
    • zx81
    • By zx81 6th Jan 18, 12:47 PM
    • 14,960 Posts
    • 15,810 Thanks
    zx81
    • #7
    • 6th Jan 18, 12:47 PM
    • #7
    • 6th Jan 18, 12:47 PM
    You simply have too much debt to be able to borrow another 24k at anything like a reasonable rate.

    You're going to need to pay some down.
    • robber2
    • By robber2 6th Jan 18, 12:55 PM
    • 298 Posts
    • 253 Thanks
    robber2
    • #8
    • 6th Jan 18, 12:55 PM
    • #8
    • 6th Jan 18, 12:55 PM
    Its their money and you have no right to credit. Appealling would be pointless.

    Rob
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 1:11 PM
    • 5,237 Posts
    • 9,943 Thanks
    enthusiasticsaver
    • #9
    • 6th Jan 18, 1:11 PM
    • #9
    • 6th Jan 18, 1:11 PM
    I assume they think you are over committed and to be honest I can see why. The loans you already have are not particularly good rates so those must have been agreed when you were not considered a good risk and consolidation loans are never a good thing when struggling with debt as I assume you are.

    Hardly anyone gets offered the headline rate. I think it is a waste of time appealing to be honest but let us know how you get on.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • YorkshireBoy
    • By YorkshireBoy 6th Jan 18, 1:14 PM
    • 29,694 Posts
    • 17,648 Thanks
    YorkshireBoy
    Hardly anyone gets offered the headline rate.
    Originally posted by enthusiasticsaver
    I wouldn't term at least 51% of successful applicants "hardly anyone".
    • DCFC79
    • By DCFC79 7th Jan 18, 5:11 PM
    • 30,642 Posts
    • 19,369 Thanks
    DCFC79
    It's a consolidation loan
    Originally posted by Mustafa786x
    Its basically a loan you plan to use to pay off your current debts, maybe you chose the consolidation as a reason.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • poppy10
    • By poppy10 7th Jan 18, 6:16 PM
    • 5,905 Posts
    • 7,141 Thanks
    poppy10
    It's a consolidation loan
    Originally posted by Mustafa786x
    They don't know that you are going to use the £24k to pay off your existing debts
    For all they know you could splash it on a new car
    Signature changed by MSE ForumTeam
    • PeacefulWaters
    • By PeacefulWaters 7th Jan 18, 7:30 PM
    • 7,560 Posts
    • 9,480 Thanks
    PeacefulWaters
    You're working two jobs to finance three unsecured credit agreements, have a mortgage that takes you close to retirement age and you're looking to double that unsecured debt.

    And you can't work out why you've been declined?

    Think about it.
    Last edited by PeacefulWaters; 07-01-2018 at 8:01 PM.
    • SnowTiger
    • By SnowTiger 7th Jan 18, 7:37 PM
    • 3,139 Posts
    • 2,116 Thanks
    SnowTiger
    It's not clear whether you want to borrow £12,000 to pay off current debts; or £24,000 to pay off current debts and splurge the rest on goodies.

    Appeal process?
    Originally posted by Mustafa786x
    IIRC, others here have mentioned persuading lenders to pay off other debts directly.
    • Vikipollard
    • By Vikipollard 7th Jan 18, 7:42 PM
    • 629 Posts
    • 1,101 Thanks
    Vikipollard
    So have you applied for a £12k loan to clear your (almost) £12k you owe, totalling £24k of debt then?

    As others have said, they have no way of guaranteeing you will use the new loan to clear the amount of debt you have.

    Also I'm struggling to understand this bit:

    Current expenditure monthly
    Loan 1 8.9% £160 x 22 = 3520
    (£4,500 remaining 22 months)
    Loan 2 : £225 9.9% x 40 = 9000
    (£5,200 remaining 40 months)
    Morgage: £430 2.19%
    (£130,000 remaining 38 years)
    Credit card: £2,000

    Do you actually owe 3520 + 9000 + 2000 = 14520?
    Last edited by Vikipollard; 07-01-2018 at 7:46 PM.
    LBM July 2006. Debt free 01 Sept 12 ..
    Finally joined Slimming World: weight loss 33lbs...target achieved 51wks later 06.05.13 & still there
    Aim to be mortgage free in 2022. Jan 17 33250, Aug 17 28974 Nov 17 27066 Jan 18 25788
    • YorkshireBoy
    • By YorkshireBoy 7th Jan 18, 8:04 PM
    • 29,694 Posts
    • 17,648 Thanks
    YorkshireBoy
    It's not clear whether you want to borrow £12,000 to pay off current debts; or £24,000 to pay off current debts and splurge the rest on goodies.
    Originally posted by SnowTiger
    Figures in the OP suggest the latter...
    I was looking to consolidate both loans into one,

    Got a quote on the screen
    £440
    3.9%
    60 months


    Applied... refused.
    Running £24K through www.whatsthecost returns a £440 monthly payment...
    The bottom line, is that this loan for £24,000.00, over 60 months, will cost you £440.91 a month.
    • Caz3121
    • By Caz3121 7th Jan 18, 8:08 PM
    • 10,943 Posts
    • 7,155 Thanks
    Caz3121
    So have you applied for a £12k loan to clear your (almost) £12k you owe, totalling £24k of debt then?
    Originally posted by Vikipollard
    Got a quote on the screen
    £440
    3.9%
    60 months
    Originally posted by Mustafa786x
    the quote given is for a £24k loan but does not tally with debt consolidation
    • SnowTiger
    • By SnowTiger 7th Jan 18, 8:39 PM
    • 3,139 Posts
    • 2,116 Thanks
    SnowTiger
    Figures in the OP suggest the latter...Running £24K through www.whatsthecost returns a £440 monthly payment...
    Originally posted by YorkshireBoy
    A bit more than a consolidation loan, then.
    • lildoonbuggy
    • By lildoonbuggy 7th Jan 18, 9:34 PM
    • 35 Posts
    • 114 Thanks
    lildoonbuggy
    I was denied by nationwide too, whilst on a slightly higher income than your first job. No debts, £1500 nationwide credit card paid off in full each month, and did the full in store consultation with one of their advisors. I was requesting £8500 over 4 years and was already accepted by Sainsbury's (I was hoping to use use their promotion to beat Sainsbury's by 0.5%). It was annoying, yes, and their advisor was also surprised. My advice is just move on, take it as a sign. I ended up repaying the entire loan in 8 months because it was concerning to think I wasn't deemed a safe bet. My credit file and bank account have been thanking me since.
    • mustafa786x
    • By mustafa786x 8th Jan 18, 12:01 AM
    • 10 Posts
    • 4 Thanks
    mustafa786x
    Evening guys

    Right this is what I pay and owe
    Loan 1 8.9%
    £160
    (£4,500 remaining 22 months)
    Loan 2 : £225 9.9%
    (£5,200 remaining 40 months)
    Morgage: £430 2.19%
    (£130,000 remaining 38 years)
    Credit card £2,000

    In total I pay £385 back currently.
    I wanted to change both loans to a 60 month repayment and £440 a month for 60 months.

    So I would be paying £440 a month back as one payment for 60 months instead of 2 separate payments that I am paying now with 2 different completion dates.

    Credit card limit is £13,900.
    Cash in bank £32,000.
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