Bank said no, but desperately need a yes!!!

retrocircles

Got a big fat NO from HSBC when I asked for a £10k loan to complete ALL house repairs/replacements on my house. I then asked for £5k which would cover all urgent repairs such as no heating system, wooden windows with rotten holes, another NO.

I personally believe I can afford a loan of at least £250 a month, still having £2-300 left 'spare' after all other bills. Do the banks not deem this enough?

What are my choices? Go elsewhere for a loan, but as I've made 2 applications in the last month, so I assume I'd have an increased chance of a NO from this alone.

Wutang_2

retrocircles wrote: »

I personally believe I can afford a loan of at least £250 a month, still having £2-300 left 'spare' after all other bills. Do the banks not deem this enough?

What are my choices? Go elsewhere for a loanQUOTE]

Its not based entirely on affordability but also credit score.

Do you know how good or bad your credit history is?

MrsTinks

And how long you have been with your bank, what other debts you have, how high risk your job/industry might be, and a million other reasons Have you checked you credit files recently and if you applied with your own usual bank have you asked them if they can tell you why you were turned down?
Some will turn you down if you haven't been with them long enough...

CLAPTON

do you have a detailed budget ... good format here

http://www.makesenseofcards.com/soacalc.html

what does it show that's 'spare'

presumaby if you have 250 spare each month then you have been saving that ..how much have you saved?

your grandparents probably lived without central heating for much of their lives .. why can't you save up for that?

jen_a_c

Did the bank tell your why the application was declined? As others have suggested, perhaps get a copy of your credit report (from all 3 agencies), unless you know of any past financial problems (defaults, missed payments etc) that may be impairing you - in which case you have your answer.

If there is nothing obvious there, and you truely believe the loan is a) affordable, and b) vital - it might be worth booking an appt with your bank and asking them to refer it to a more senior sanctioner to look at it in more detail. Be prepared to go armed with proof of affordability, clean credit report, and quotes of the required works.

Rafter

If you have equity in your home, could you ask your mortgage lender for a further advance?

£200-£300 per month for all other bills doesn't sound very much and you may have failed an affordability test.

How much existing debt have you got too? if that (with this loan) would be more than 50% of your gross salary that might also send alarm bells ringing about how indebted you are.

R.

CHR15

CLAPTON wrote: »

your grandparents probably lived without central heating for much of their lives .. why can't you save up for that?

Thanks for making me feel OLD !!!

I'm no grandparent but I grew up with Ice on the inside of my bedroom window!!

I remember trying to get dressed whilst still in bed so I didn't have to get out into the frosty cold of my room!

Snowminx_3

Find out your credit report and credi rating on Experian, free 30 month trial. You will be able to see what lenders are looking at when assessing you. It with give you a clear indication of our attractiveness to a lender then.

creditcontroller

I think you mean 30 days...

Joeler

CLAPTON wrote: »

your grandparents probably lived without central heating for much of their lives .. why can't you save up for that?

Are you saying we should vote to turn off central heating in Old Peoples homes to reduce our taxes as they're probably used to it anyway?

Good plan I'll draft a letter to my local MP

retrocircles

Wutang wrote: »

Its not based entirely on affordability but also credit score.

Do you know how good or bad your credit history is?

I don't have anything bad against my name, if that's what you mean. I'm a homeowner, married, DH also doesn't have bad credit.