Some advice on Natwest 'Consolidation' Loan

izzybusy23

I am really stumped!!

Me and DH earn approximately £50k between us. However, we have run up a £3k overdraft recently and although we have no problems paying this off, I wanted a loan to repay it incase Natwest pulled the overdraft at short notice. Anyway, they said they would consider a consoldation loan, but it had to include all debts held with Natwest. I am currently £400 overdrawn on my personal account and my DH has a loan with them at the moment with £2100 left on it.. ok, not a problem BUT Natwest have said in order to 'qualify' for this consolidation loan, they have to take the joint account overdraft when it was up to its highest (£4500), my overdraft when it was up to its highest (£1600) therefore making a grand total loan of £8500!!! !!!!!!!! :eek:

They will not let us borrow the money to cover the current £3k but insist on taking an extra £5.5k at a cost of £240 a month!!!!!

I don't get it.. why on earth would they 'make us' borrow money for when our overdrafts were at their highest which they obviously aren't anymore..

Christ, no wonder people get up to their eyeballs in debt.

Our overdraft will be paid off by the end of the year and my DH's loan in December 2010.. so its seems daft to me to take out an £8500 loan over 4 years..

Oh and Natwest no longer offer PPI, you have to get it from an independent broker.

Is this all just a bit weird? The banks seem to be resorting to strange lending practices in an economic downturn.

petermb_2

It is a clever way of getting rid of all their dodgy agreements and ppi in one fell swoop.
You end up with a new agreement and everyone is hunky dorey.
I should look at the agreements you have and the ppi before you do anything.

Kavanne

Natwest should (as in, this is their policy) be taking the largest amount you have been overdrawn in the last 30 days for the loan figure. Not the highest EVER.