Repaying a loan goes unrewarded!

rickandmer

Hi Everyone

Had to have a whine somewhere. My partner used to bank with Alliance and Leicester and had a personal loan with them for £20K over 48 months, which she finished repaying last year, no late or missed payments and a very good credit profile.
She approached the bank again this year for a new loan, but now under the guise of Santander. She had been approved by Audi for vehicle finance, but wanted the cheaper rate on offer by her bank. Even though this loan was for £14500, nearly £6K less than before, it was declined.
On being questioned, Santander confirmed they pay no attention to the previous loan and even an excellent repayment history on the old loan would be ignored, each new transaction is dealt with individually when making their decision on a new loan. ??????

I bet though if she had missed a payment on the old loan, this would have been raised as an issue. She contested the decision and got a letter back from the Santander Underwriters basically saying sorry, no go.

Surely this cannot be considered fair by any means. Miss out on payments and you get punished, finish paying off a personal loan and you get no recognition. Anyone else find this bizarre?

drbesty

Loans are harder to come by these days, it's as simple as that

ILW

Surely the reward is the interest you are not paying.

Gothicfairy

rickandmer wrote: »

Anyone else find this bizarre?

Sorry but that would be a no from me..

Things have changed and getting a loan now is not the same as it was several years ago.

If your income / out goings do not comply etc then you will not get the loan. That is really all there is to it.

Foggster

Sadly I dont find it "bizarre" in the slightest.

I am sure many of us have been in the same situation, I know I have when I finished a loan with Sainsburys bank and wouldnt entertain a future loan. So so many factors as to why they have refused her a loan. You dont say how many additional financial commitments she may have taken on in the last 4 years, changes in employment, address etc. Each bank will have its own criteria and have the right to say no with very little rhyme or reason.

Apples2

4 years ago lenders were falling over themselves to find customers to throw money at.

IMO opinion I think it a good idea to base all applications as if it is a first, of course, they can (and did) see the excellent history when basing their refusal.

The days of responsible lending does have a downside, as you have discovered.

drbesty

If responsible lending means not getting a £20k loan every 4 years then I'm all for that

pvt

The recent credit search from VW Finance showing on her CRA records would not have helped her cause!

hcb42

i dont find it bizarre at all. Comfortable reassuring that banks are learning their lessons of reckless borrowing (not saying the £20K was reckless...)

Every loan is taken on its own merits.

Welshdebtor

rickandmer wrote: »

Hi Everyone

Had to have a whine somewhere. My partner used to bank with Alliance and Leicester and had a personal loan with them for £20 over 48 months, which she finished repaying last year, no late or missed payments and a very good credit profile.
She approached the bank again this year for a new loan, but now under the guise of Santander. She had been approved by Audi for vehicle finance, but wanted the cheaper rate on offer by her bank. Even though this loan was for £14500, nearly £6K less than before, it was declined.
On being questioned, Santander confirmed they pay no attention to the previous loan and even an excellent repayment history on the old loan would be ignored, each new transaction is dealt with individually when making their decision on a new loan. ??????

I bet though if she had missed a payment on the old loan, this would have been raised as an issue. She contested the decision and got a letter back from the Santander Underwriters basically saying sorry, no go.

Surely this cannot be considered fair by any means. Miss out on payments and you get punished, finish paying off a personal loan and you get no recognition. Anyone else find this bizarre?

£20, over 48 months????? I doubt anyone would have problems paying that back :rotfl:

Joking aside, I like others do not find it bizarre. Sadly the banks use different criteria than years ago.

CH27

The approval from Audi would be showing on her credit file & they probably found it very suspect that she wanted to borrow £29k.