Loan declined - worth appealing?

manka

Hello,

We (fiancee and myself) were declined a loan of £17000 (for wedding). We both earn around £16000 a year. We have no outstanding loans; credit cards and OD balances are zero. We have around £700-£900 each month left from our wages. We have permanent jobs, pay everything on time. We are on the electoral roll, but move in about 3 month ago.

I am about to write back, and support everything with paperwork. Do you think it is worth the effort? Has anybody ever been successful with an appeal? What shall I put into the letter?
Many thanks!

BadgerFace_2

That's a LOT of money on your combined wage, even if you can afford it!

Surely with that much spare, you could save in 18 months?

It takes that long to plan the big day anyway doesn't it?

kissjenn

Is it for a wedding or a property abroad? Last thread advised you to change the reason for your loan from property to wedding.

If you have surplus of circa £800 per month, why not save for 2 years and get married or buy a house abroad or anything else you want minus any loan?

You also said you just moved, was that to a rental or mortgaged property? If mortgaged that will count as a debt against you.

manka

Thanks Badger, but this doesn't help me. I need that much money, so lets not debate on that. Maybe could do with a few thousand less. Is there a sum seeing my numbers that do you think I could get a loan for (and save the rest up from our wages)?

manka

kissjenn wrote: »

Is it for a wedding or a property abroad? Last thread advised you to change the reason for your loan from property to wedding.

If you have surplus of circa £800 per month, why not save for 2 years and get married or buy a house abroad or anything else you want minus any loan?

You also said you just moved, was that to a rental or mortgaged property? If mortgaged that will count as a debt against you.

The reason for which I do not want to save up, but have it now, is that I want my family (from abroad) to see me getting married, and also show them where we live now. I no it sound not important to spend this much money on it, but our grand- and great-grand parents are not doing very well health wise, and they've always done so much for us, I want to do this for them. As we could afford this without getting into any financial difficulties, I do not mind taking out a loan, if I can get one.

The house is a rented one, we do not have mortgage.

Tixy

No, you stand very little chance.

Mainstream banks are looking at maximum unsecured credit of around 50% of your income at the moment.
What credit limits do you have on your cards and overdrafts in total?
On a combined £38k salary you are unlikely to get more than say £16k total credit including all the active but unused credit.
(this is assuming you have good credit ratings, no missed payments, defaults, CCJs etc)

manka

Tixy wrote: »

No, you stand very little chance.

Mainstream banks are looking at maximum unsecured credit of around 50% of your income at the moment.
What credit limits do you have on your cards and overdrafts in total?
On a combined £38k salary you are unlikely to get more than say £16k total credit including all the active but unused credit.
(this is assuming you have good credit ratings, no missed payments, defaults, CCJs etc)

Hi Tixy,
Together we've got about £3000 unused credit. So that means we could only get around £13000?
The strange thing is that I've been receiving letters from my bank (LLoyds) offering me loans around £11,000.00 , and that's not a joint account, mine only.

Tixy

The 50% thing is a good guideline but not absolute.

Sometimes your own bank is willing to go higher than other banks - if you have maintained the account well, as they have seen how you have operated your accounts in the past. So that might be an option to try.

(although it may be that they will still credit check you even after 'offering' you these loans so might not be guaranteed - depends on the wording of what they have sent I guess)

manka

Tixy wrote: »

The 50% thing is a good guideline but not absolute.

Sometimes your own bank is willing to go higher than other banks - if you have maintained the account well, as they have seen how you have operated your accounts in the past. So that might be an option to try.

(although it may be that they will still credit check you even after 'offering' you these loans so might not be guaranteed - depends on the wording of what they have sent I guess)

Thanks Tixy, I might try my bank. I didn't want to, as they offer horrendous APR, but might be worth talking to them.

Tixy

Perhaps talk to them before you actually allow them to do a full credit check (as you want keep those to a minimum on your credit file).

Is there anyway you could borrow a bit less? Is this money all being spent on getting your relatives here? Have you checked out the MSE money saving tips on travelling/finding cheap flights ?
It might be worth talking to the bank who turned you down to see if they would lend to you if it were a smaller amount. Or if you reduced the existing credit you already have (close you credit cards or cancel overdrafts).
How soon do you need the money? if you can put it off for a few months you could save up the £700 you have spare so that you don't need to borrow quite so much.

manka

Tixy wrote: »

Perhaps talk to them before you actually allow them to do a full credit check (as you want keep those to a minimum on your credit file).

Is there anyway you could borrow a bit less? Is this money all being spent on getting your relatives here? Have you checked out the MSE money saving tips on travelling/finding cheap flights ?
It might be worth talking to the bank who turned you down to see if they would lend to you if it were a smaller amount. Or if you reduced the existing credit you already have (close you credit cards or cancel overdrafts).
How soon do you need the money? if you can put it off for a few months you could save up the £700 you have spare so that you don't need to borrow quite so much.

I've been thinking and you are absolutely right Tixy! We'd probably do with £13000 for now, as we can save up the rest by the time we need more money. I go back to the bank with the smaller amount, and see what happens. Fingers crossed.
Thanks for your help Tixy! Not picking at me, but simply trying to help: much appreciated!