accepted than declined with natwest!

glenandemm

hi guys can somone explain why i was accepted than next day declined a loan on affordability?
basically i have a loan already with natwest but have a natwest cc and od that im paying over £100 interest a month, so i phoned them up asked if i could consolidate them and renew the loan,no problen they said and told me the payment im already paying on my loan now would go up £10 a month but my cc and od would be gone and i wouldnt be paying £100 interest a month and also the cc payment i make every month. so everythings ok, im accepted and they said can i go into the branch to sign for it and the funds will be in my bank but i couldnt get there so she said she'd post it out.
then today this lady rings me from my branch again and says can i rip up the agreement as ive not been turned down on affordability even though it would save me money on the interest and i would have less payments every month, so how the hell can i not afford it if its costing me more now and why did they accept me for a loan then phone me next day telling me to rip the contract up that i havent recieved yet and what would happen if i signed and returned it?
not happy with natwest atall

Robert_Sterling_3

If you would be better off and they would be worse off as a result of what you hoped would happen then I think that they realised that this would be the case and opted out.

Do not make the mistake of thinking that a bank always acts in the customers interests rather than the banks.

glenandemm

i was thinking that, the fact that theyre making more money by keeping me in this situation will work out better for them and not me,i phoned them back up and had a go at the lady who's been dealing with it since i first phoned them, saying that its not fair to tell me i can have a loan than say that i cant afford it when its blatantly obvious i can afford it coz it will be cheaper and i'd be saing money from interest.
12 yrs of service counts as nothing to these banks but theyre happy to give massive loans out to idiots who are never gonna pay them back and now we joe public are bailing them out!
anyway gonna get a loan from somewhere else who will borrow to me at a fair rate then im closing my natwest account, funny that they do that advert where they invite you into the bank so they can go through your finances and save you money,,,,,,but as long as it doesnt affect them from screwing you eh??

Robert_Sterling_3

Exactly

glenandemm

can anyone recommend a decent loan company with fair interest rates?
apart from natwest!!!

Robert_Sterling_3

What is a fair interest rate ?

glenandemm

:rotfl:

Robert_Sterling wrote: »

What is a fair interest rate ?

very true mate, for me personally somethings thats not as high as a cc or od?

Kavanne

You could sign it and send it back if you like, what have you got to lose?

However, if it does not meet affordability the underwriters will just decline it outright. IT DOES NOT MATTER IF THE NEW PAYMENT IS LOWER THAN YOUR CURRENT OUTGOINGS. What are your incomes/outgoings? ie: salary + benefits - new loan payment - other loan repayments (including items on finance/HP) - other credit card repayments. What does that come out at?

chambta

No point sending it back as it won't go anywhere. As to why it happened I would hazard a guess that the checks were not done at the appropriate point in the application and the adviser realised too late their error.

There have always been in-built affordability checks with the loans dependent on other credit commitments, dependents etc but the process has been really tightened up in recent months.

As Kavanne says it is completely irrelevant that the new loan is less than you presently pay. The loan in question has to be deemed affordable. If it's not in the eyes of the bank then the fear is that shortly you'll be back in a similar position but with bigger numbers the problem.