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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 2
    • mustafa786x
    • By mustafa786x 8th Jan 18, 12:03 AM
    • 10 Posts
    • 4 Thanks
    mustafa786x
    I have lodged a appeal as the advisor said I got the lowest rate available.

    If it's a decline I'll do a soft search online and see if anyone else is willing to lend.

    Really don't understand nationwide.

    I could take out £11k from the card but it's 12.9% Apr.
    • Dribiddi
    • By Dribiddi 8th Jan 18, 3:16 AM
    • 56 Posts
    • 22 Thanks
    Dribiddi
    I have lodged a appeal as the advisor said I got the lowest rate available.

    If it's a decline I'll do a soft search online and see if anyone else is willing to lend.

    Really don't understand nationwide.

    I could take out £11k from the card but it's 12.9% Apr.
    Originally posted by mustafa786x

    Have you not read what others have said?
    Take it from someone that has been in a similar situation to you, you have too much debt and lenders will eventually call a halt on this getting ever bigger.
    Focus for the next 12-18 months on taking your medicine and reducing how much debt you currently have. If lenders see you can do this whilst meeting any other commitments you have you will be in a better place to get a loan at a good rate.
    • Caz3121
    • By Caz3121 8th Jan 18, 7:25 AM
    • 10,918 Posts
    • 7,129 Thanks
    Caz3121
    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)

    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.
    Originally posted by mustafa786x
    so to pay off the current loans you pay £385 for 22 months and then drop to £225 for a further 18 months and debt gone April 2021 and total of £12,520 paid
    Instead you want to 'consolidate' with a loan for 60 months - till January 2023 and pay a total of £26,400

    About half the loan is for consolidation, what is the rest for?
    How much interest does your £32k cash in bank earn?...any reason not to use that to pay the debts and replace the savings at £440 a month if that is affordable
    • Lungboy
    • By Lungboy 8th Jan 18, 7:30 AM
    • 1,141 Posts
    • 1,076 Thanks
    Lungboy
    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.
    Originally posted by mustafa786x
    Why would you be looking to accrue even more debt when you have £32k in the bank, presumably earning less in interest than what you pay on your loans?
    • mustafa786x
    • By mustafa786x 8th Jan 18, 8:40 AM
    • 10 Posts
    • 4 Thanks
    mustafa786x
    13k is to much debt?! Really?
    I could clear the loans and have nearly 20k in my account but the idea was to have a extra 14k and only pay £60 extra a month more than I'm paying now.

    The money was to be used for my house I live in now to be refurbished.
    • Browntoa
    • By Browntoa 8th Jan 18, 9:07 AM
    • 32,146 Posts
    • 37,871 Thanks
    Browntoa
    They won't tell you why you failed their scoring

    Hence your appeal is likely to fail
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • PeacefulWaters
    • By PeacefulWaters 8th Jan 18, 9:29 AM
    • 7,520 Posts
    • 9,402 Thanks
    PeacefulWaters
    13k is to much debt?! Really?
    I could clear the loans and have nearly 20k in my account but the idea was to have a extra 14k and only pay £60 extra a month more than I'm paying now.

    The money was to be used for my house I live in now to be refurbished.
    Originally posted by mustafa786x
    Ultimately you want to pay more interest on your debt than you're earning on your savings.

    Basic maths says that's just silly.
    • mustafa786x
    • By mustafa786x 8th Jan 18, 9:55 AM
    • 10 Posts
    • 4 Thanks
    mustafa786x
    Appeal has been accepted.
    System error.
    Thought I was borrowing more than £25,000.
    Who said the appeal won't work?
    • Caz3121
    • By Caz3121 8th Jan 18, 10:04 AM
    • 10,918 Posts
    • 7,129 Thanks
    Caz3121
    13k is to much debt?! Really?
    I could clear the loans and have nearly 20k in my account but the idea was to have a extra 14k and only pay £60 extra a month more than I'm paying now.

    The money was to be used for my house I live in now to be refurbished.
    Originally posted by mustafa786x
    £14k existing debt plus £24k loan gives a total of £38k debt
    It is only paying £65 extra per month more for 22months, then you would be paying £215 extra than you would be for 18 months then £440 a month more for another 20 months so it sounds like you wanted to make £14k extra in repayments to top up your savings by £10k
    How much is the refurbishment costs? - do you need £32k savings + £10k extra to do this work?
    • mustafa786x
    • By mustafa786x 8th Jan 18, 10:16 AM
    • 10 Posts
    • 4 Thanks
    mustafa786x
    The loan amount that I owe will not be 14K
    It will increase to 24K
    • Caz3121
    • By Caz3121 8th Jan 18, 1:02 PM
    • 10,918 Posts
    • 7,129 Thanks
    Caz3121
    The loan amount that I owe will not be 14K
    It will increase to 24K
    Originally posted by mustafa786x
    probably irrelevant since rejected but it appears you wanted to pay and additional £14k to borrow an additional £10k plus increase the term of your debt by almost 2 years


    A consolidation loan would generally to consolidate existing debt...in which case you may have had more success if you apply for the amount needed to consolidate without the extra
    why not take the extra £10k you want out of your savings and save £4k on repayments?

    Banks are within their rights to choose who they want to loan money to. You do not meet the lenders borrower profile...that is all they need to tell you.
    • PeacefulWaters
    • By PeacefulWaters 8th Jan 18, 1:10 PM
    • 7,520 Posts
    • 9,402 Thanks
    PeacefulWaters
    probably irrelevant since rejected but it appears you wanted to pay and additional £14k to borrow an additional £10k plus increase the term of your debt by almost 2 years


    A consolidation loan would generally to consolidate existing debt...in which case you may have had more success if you apply for the amount needed to consolidate without the extra
    why not take the extra £10k you want out of your savings and save £4k on repayments?

    Banks are within their rights to choose who they want to loan money to. You do not meet the lenders borrower profile...that is all they need to tell you.
    Originally posted by Caz3121
    You appear to have missed post #28.
    • Caz3121
    • By Caz3121 8th Jan 18, 1:39 PM
    • 10,918 Posts
    • 7,129 Thanks
    Caz3121
    You appear to have missed post #28.
    Originally posted by PeacefulWaters
    I did indeed - still think it is a crazy plan to pay all that interest unless the savings are earning more than that...
    • Tarambor
    • By Tarambor 8th Jan 18, 1:56 PM
    • 1,919 Posts
    • 1,370 Thanks
    Tarambor
    What the hell do you have that amount of debt for if you've that much in the bank? Unless you can get a loan with a lower APR than the interest rate on your savings it will cost you more to repay a consolidation loan than it will to repay the debts out of your savings.
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