Desperate - Help!!

mccoid

I have a similar problem to chic (and many others it seems) in that I don't know why I have been turned down for a loan by 2 companies Northern Rock & Abbey National. I also have a experian credit report and can get no answer from either company except to say they don't understand either, other than I don't meet their internal scoring system!

My details are as follows:

* Mortgage holder for last 4 yrs present one since June 05 - 45k
* Equity in house 130k
* Loan for home improvements - 26k
* Salary 23.5k
* On electoral roll for last 4 yrs
* No credit cards
* Full time employment no breaks - last 12 years, current job f/t permanent for last 12 months
* Lived in home for last 4 yrs

I am looking to borrow 20k and applied for both loans in quick succession (which I now know is not a good a idea) about a month ago. I am married but only applied in my name as my wife is self employed and as a result of buying a new car for the business she made a loss last year so didn't see the point in putting her on the appplication. This coupled with the fact she does her own books and tax return and getting audited accounts for the application seemed like a pain we decided against putting her on!

On paper we know that most likely the reason is my earnings are too low, although we know we can afford to repay the loan, so what does anyone else think/know?

Q) Can anyone offer up any ideas - just the salary or something else?
Q) Exactly how long do you have to wait between loan applications (some say a couple of months, 3, 6???)

Many thanks, Patrick :beer:

Robert_Sterling_3

It occurs to me to wonder why in June 2005 you took a mortgage of only £45,000 leaving £130,000 equity in your house.
Why did you not get for example a £70,000 mortgage.
That is what would strike me if I were a lender

mccoid

Thanks for the reply its a long story we where going to get a bigger mortgage but didnt in the end due to family problems but now everything is back to normal we wanted to try and get the extra money to start ower new adventure
Didnt think it would start this soon

Thanks anyway

Robert_Sterling_3

You are trying to borrow a total of £91,000 on annual income of £23,500.
If you added your wife loss the total would be less than £23,500.
Since a significant part of the money is not mortgage money and so likely to be at a higher interest rate it follows that you are less able to cope with £91,000 in the form than you would be if it was all mortgage money.

In a nutshell you would be theoretically overstretched with the further £20,000 loan.