Lloyds TSB Declined Loan

Tolian

Hello.

My partner and I have recently decided to get married asap. I earn £30,000 and I recently took out a £5000 LLoyds TSB loan to cover engagement and holiday/honemoon costs. But because we've decided to get hitched asap, to pay for the wedding I would like to take out a further £10,000 over 60 months. Lloyds TSB declined to loan me ANY amount on the basis that my spending in recent months has been high, and that I had only recently applied for the 5k loan. I had a loan for a similar amount a few years ago and I never missed a payment. That has been paid off. Lloyds TSB have really angered me by declining this loan, I know the banks are in trouble, but given my history I am a pretty safe bet. I won't be doing anymore business with them that's for sure! :mad:

I am not a homeowner, I live alone. I have never missed a payment or anything like that. I typically don't spend very much in a month. I hold a basic current account with a visa debit card. I am 29 years old and have been in full employment for 12 years without any gaps.

My balance has always been in the black. I'm careful with my money, and although these are large amounts I am borrowing... it's for my sodding wedding day!

Am I screwed? I can easily afford the loan repayments, it's not a problem at all. I just applied to Clydesdale bank for a 10k loan and waiting for them to get back to me, but I don't want another declined application on my rating.

What are my options?

Many thanks,
Tolian

Matty84

You may have more luck with another bank. Dont forget the Gov' have a huge stake in Lloyds BG and they are obviously more stringent on the amount they lend than other banks because of their situation.

But like you say dont keep applying youll just look desperate for credit, and they dont like that.

FYI I got a loan out for 16k from Nationwide, got special rate as im a current acc holder.

Try them?

jonesMUFCforever

Your post has a few holes in it ---- you earn £30k and say you don't spend much in a month --- so do you have any savings? If so why borrow £5k let alone £15k?
It is fairly common practise not to let a customer have another loan if one has recently been processed - the bank may be accused of crunching.

The banks are not in danger and the bail out has no effect whatsoever on day to day lending decisions although I can understand your anger at what you think is an injustice.

Looking at your loan to salary ratio a £15k loan is already 50% without taking into account rent, utilities, food transport and cash for general spending etc - my thinking is that you are high risk especially if you rent as opposed to owning a property.

Tolian

I have no savings, I haven't always earned 30k, and I've been spending alot recently on Christmas engagement ring, engagement parties and of course wedding deposits etc.

The reason for the loan is because we want to get hitched now instead of saving and waiting. This may not be the most practical approach but it's what we want to do.

jonesMUFCforever

Tolian wrote: »

I have no savings, I haven't always earned 30k, and I've been spending alot recently on Christmas engagement ring, engagement parties and of course wedding deposits etc.

The reason for the loan is because we want to get hitched now instead of saving and waiting. This may not be the most practical approach but it's what we want to do.

I want I want I want = years of misery when the s--t hits the fan and you come back into the real world.

Even if she is up the duff you cannot afford it - if you don't want to save tone down the arrangements - it does NOT HAVE to cost thousands.

DES_1001

£10 grand on a wedding, what a waste of money.
I'll tell you one thing, you say you can afford the repayment now, but wait till you are married with loads of bills, bet you will struggle then!
Anyway hope you do get it sorted.

Tolian

I have loads of bills, our living costs won't change after the wedding. I am aware of the pitfalls of debt, but I have been thinking about this heavily, and spent many hours with spreadsheets just figuring out how much we can afford, with room to breathe.

I do appreciate the words of advice, but I am more interested in what my options are now for borrowing, instead of whether or not I should borrow in the first place. Thanks for all of your replies.

jonesMUFCforever

Your options are limited your own bank has turned you down.
Try someone like Ocean finance -(don't know if they lend unsecured) but expect to pay over the odds interest rate wise.

vaporate

From reading the OP's post:

Facts:

It is the banks money and so it is up to the bank. Not a right.

No savings and so reliant on bank loan

Own bank declined loan and so will have to chase a loan elsewhere where interest rates will be hiked.

Solution: Save up first.

Apples2

£15,000 on a wedding.........Jeez!!

Entering into a marriage with such a burden can NEVER be a good idea.

You will be repaying your one day party for many many years to come.

I'm sure you wouldn't listen to reason, but you need to SAVE before entering into a marriage, you are going to want a home, with cookers and TV's, a couple of cars and a whole list of things you haven't even considered.

With a £15,000 loan (so about £20,000 to repay), those things are NEVER going to be within your grasp.

RobertoMoir

Tolian wrote: »

I do appreciate the words of advice, but I am more interested in what my options are now for borrowing, instead of whether or not I should borrow in the first place. Thanks for all of your replies.

Typically, your own bank is supposed to be one of the more likely to lend to you (not always the cheapest price for a loan though!) because of the existing relationship between you and them. They want to keep customers happy if they can, and they already know a great deal about your financial affairs. If they are reluctant to lend to you then other "normal" lenders will probably be equally unhelpful.

Be angry with them if you want but they are making a business decision based on what they know about your financial affairs, they are not trying to be personally offensive which is how you appear to be taking their decision. You're talking about owing 50% of your salary, which is a substantial risk for any lender and appreciating that might help you to understand why they made the decision they did.

If Clydesdale turn you down then your choices are either the sub-prime lenders like Ocean as has been suggested already, and prepare to be royally hammered on the cost of the loan as has also been suggested, or (and I know you don't want to hear this) re-think your plans. Do you really need to spend £10k on a wedding? Do you really need to get married right away? It may be you can only afford to do one of those things rather than both.