Don,t the banks like lending

MrandMrs_2

Hello have just applied for a loan today and was turned down first time in our lives
have never missed a payment on anything never had a problem before this just can,t understand it.

nomoneytoday

Are you on the electoral role, have you moved recently, got a new job, been identity cloned, or simply don't match the lender's criteria?

I would spend £2 on your credit file and see if anything is untoward. If not then move on elsewhere

MrandMrs_2

Hi yes we are on the electoral role register.
Lived in this property in which we have a mortgage for 8 years.
Wife has been in this job for 2 years,and over 7 years before that.
And we are in the last year of a £25.000 over 7 years loan.
Can,t say for sure weather we have been cloned.
I did have a very small loan about 3months a go which was not a problem.
Also to say that we do not fit or simply don't match the lender's criteria?Yet we have now a mark simply because of their own rules and we will pay the price refusal.
The wife was told that its not affordable even though the new loan if we had been accepted would be £3.00 more than already paying also it would make us better off by £150.00 a month.
That was at the rate of 8.0%.
We did speak to our building society who we just filled out a form Quoted us 12.1% for the same loan we have not asked them to go ant further.
Makes me very angry that we have been refused, and a now a mark is against us on our credit rating which is the first time ever and could only make it worse if we try again, i know that it will just show that we made a application and not the out come thats easy for them to guess why.:mad:
Wheres the :money: Top money saving man to help me sort this out.

chalkie99

If the loan would be £3 more than you are already paying how would you be £150 a month better off?

How much are you applying for?

If your intention is to consolidate your existing loan into the new arrangement lenders will be looking at the total amount you are borrowing at any one time as they cannot be certain you will actually settle your old arrangement with the new advance.

Wutang_2

MrandMrs wrote: »

Wheres the :money: Top money saving man to help me sort this out.

Who is this man you refer to?

and the search isnt going to make any real difference if your credit rating is already good...

MrandMrs_2

Hi yes as before it has never been a problem to consolidate a loan and thy have payed the final amounts for us as part of the conditions to the loan on the £25,000 we loaned before this one which was for a new vehicle... then £25,000 a new kitchen extension now £25,000 to clear this last year on this loan, credit card, also to buy a motor home.
As i had said before if we had been accepted would be £3.00 more than already paying also it would make us better off by £150.00 a month.
That was at the rate of 8.0%.
We could take another offer in which our building society had offered the same amount at 12.1% over 7years which would make us better off by £100.00 a month.
still looking for some real help. :money:

Rafter

£25,000 of unsecured lending is a lot. Banks simply don't have as much money to lend and have lost a fortune from lending too much to people who couldn't afford to pay it back when their circumstances changed. They are particularly scared/scarred by 'consolidation loans' where people have borrowed to repay existing debt and then run up credit cards again.

If you have plenty of equity in your home, you could try getting a 'further advance' loan - but you will be putting your home as risk if you can't keep up payments.

R.

MrandMrs_2

I have to agree that the banks have lost a lot of money,thats not down to us as we have always payed. The banks were throwing money at customers that thy know could simply not afford it, and now every ones is going to pay i think thats why thy will not loan certain amounts as the Libor rate has increased again, ( 11 oclock every morning in London ) and the government thinks that printing more money will ease this situation between the banks thy see this as a money making exercise for the fat cats and their bonuses, when the bank of england s base rate is only 0.5%.
It always amazes me that for mortgages/ loans/credit cards extremely high rates until it comes to pensions/savings/investments the percentages are very low
We do have plenty of equity on our home and we do have other investments which will mature in 10 years.
As i have said we would like an unsecured loan now rather than later.:mad:

Dan:_4

Phone up your existing loan provider and ask for a top-up loan.

Dabooka

I'm confused, you appear to understand why the banks are stricter, yet still seem to be demanding a £25k unsecured loan. And expect someone on here to point you in the right direction.

Why don't you wait until your current loan ends next year, and then apply? Maybe the fact you'll not have to service 2 huge loans would make you more appealing a customer and less of a risk. Or maybe go for a secured loan, if you "must" have that motorhome?

iolanthe07

I have a perfectly decent clean reliable motorhome that cost me £12K. I saved up for it. No one actually needs a motorhome.