Securing unsecured loan

jay06

Hi everyone! atlast I am posting my problem after scouring over a lot of others problems. Well I had been to Natwest with whom I bank (my husband inclusive) to apply for a loan of £10000. Although the loan was approved in principle online, as we are not permanent resisdents of this country we were turned down. Does anyone have a similar experience. How to obtain a loan if you do not have the 'indefinite leave to remain' visa. Both my husband and I have permanent jobs and have lived for over a year in the present address and also have been employed for more than a year but the bank seems to be unconvinced to lending out an unsecured loan for people with an expiry date on the visa. Would producing a guarantor be a help in such a situation. Any advice on this please?

lynzpower

you probably want to ask on the loans baord about this, whats the loan for?

jay06

Well we gave the reason as ' refinance other debt' as that was the one that seemed to suit (don't yet have a full driving license to aslk for car loan). The major debt being credit card repayment ( £2500 for 2 cards and hubby's fully overdrawn on his account, which is £800). We are able to make the repayments but would like the money to repay friends who had helped us initially when we arrived in this country 20 months ago. It really matters that we return the money to them as we feel that they have other commitments and though have not asked for it would welcome it.
Hope someone could help out.

rog2

I'm not surprised they wouldn't lend you if you gave that as a reason. Sounds like a consolidation loan, that would be secured against a proprty.

jay06

Well we gave the credit card statements and current account statement as documents but no evidence of money borrowed from others. Also what other reason can you give? we rent a private property - so can't say home improvements. Are ther any lenders who would lend if provided with a guarantor and hopefully at a good APR. NatWest initially offered 6.9% but when told that we are not UK citizens the rate rose to 11.8% but finally informed that they could not do loans for people with visas with an expiry date.

Please help

Dr.Shoe_2

This is very difficult. The problem is not what you want the money for but the fact that you would be expected to leave the country before the loan matures.

Are you employed on some kind of fixed contract? If so, you can try applying for a loan that matures before your contract expires.

Your credit cards and overdraft are "revolving credit" that is to say a credit line that has no fixed settlement date. Moreover, the debt on the credit cards can be chased virtually anywhere in the world whereas a bank-loan can't.

CLAPTON

so as i see it you want to repay people that helped you....presumably you do not pay them interest
but you want to borrow money at a significant interest rate so you can pay them back...but thats ok because you can afford this... so why not pay them back directly... wouldn't you all be better off?

CFC

Clapton has a very sensible view of it. You're going to be lucky to find a bank that will lend you anything.

My partner is an EU citizen and had a hell of a job even getting anything other than a Basic Bank Account, let alone a loan. Except Provident offered of course, at 149%. Yet he had Swedish credit cards to show, and had a job, it made no difference.

jay06

Thanks for all your replies. I do understand the difficulties in getting a loan if you do not have the proper visa, only a bit late. With regards to Clapton's question, we are paying some interest on the loan to our friends but we wish to repay them fully and be clear. Both of us have permanent jobs and are not on contract, so nothing really to show that we would be in the country till the end of a particular period. I suppose that also adds to the problem. Has anyone tried obtaining a loan through a guarantor? Banks ask for guarantors for student loans but I am nt too sure of persinal loans and don't want to ask them straightaway without doing some research on this. Has anyone on work permit with expiry dates for their visas obtained loans? Please could you advice on the procedure.