HSBC Loan

mooney3019

went in to HSBC this week and explained I had the funds to clear my remaining £15600, and wanted new loan in its place for £16350 over a shorter period, was told by the bank to clear my old loan and they would sort a new loan, so paid it off this morning, checked my loan was clear and went back to the bank on their advice and applied for a new loan, and got rejected !! been with them 16 years over £10k in the bank and a 900 experian score which is clean all the way back to when I was 16 in 1995


any ideas, put in a complaint and was told I was mis advised and shouldn'thave cleared my old loan, but all i did was follow their advice


help !!!

mooney3019

Help!!!!!!!!!!!!!!!!!

vaporate

mooney3019 wrote: »

went in to HSBC this week and explained I had the funds to clear my remaining £15600, and wanted new loan in its place for £16350 over a shorter period, was told by the bank to clear my old loan and they would sort a new loan, so paid it off this morning, checked my loan was clear and went back to the bank on their advice and applied for a new loan, and got rejected !! been with them 16 years over £10k in the bank and a 900 experian score which is clean all the way back to when I was 16 in 1995


any ideas, put in a complaint and was told I was mis advised and shouldn'thave cleared my old loan, but all i did was follow their advice


help !!!

:rotfl:

It is clear they tricked you into paying it off, while deciding not to lend to you, sorry to say.

I''m laughing at the banks tactic by the way not your misfortune.

packeted

Sounds outrageous to me. Firstly they should have told you that the second loan would not be guaranteed and would be subject to credit/affordability checks. If they definitely assured you the loan would be available then there's probably grounds for a complaint. Either way, now is not a good time to be chopping and changing loans!

Apples2

Surely a pre-existing loan would have been a better apr than those currently offered.

How was it that a new loan for the same amount was the better option? was the previous a variable rate?

Just seems odd to me to have the money to clear a loan, then clear the loan, then request the same amount back again.

blue_haddock

Apples2 wrote: »

Surely a pre-existing loan would have been a better apr than those currently offered.

How was it that a new loan for the same amount was the better option? was the previous a variable rate?

Just seems odd to me to have the money to clear a loan, then clear the loan, then request the same amount back again.

That is exactly what i was thinking too

david39

I think the OP probably meant to say he had the funds to clear the REMAINDER of his £15,600 and then take out a loan for a higher amount.

That is, he had already paid off part of the original loan but was now going back for more.

Seems the only logical explanation for his course of action.

mooney3019

no i had the original loan for 6 years, the new loan was going to be 5 years and for a total of £16350 so a difference of £750 over the previous, at a rate of 9.9 % would have saved me £125 per month