Nat west lending criteria

Muscle750

My mortgage is with Santandar at the moment with a balance of £130k my deal is up in June i also have a Nat west loan with a balance of £10k yesterday i phoned up nat west and discussed about refinancing the loan and to see what it would save me etc as im paying £370 a month this was because intially the loan was for £25k I was immediately told that it would more than likely be declined even before they knew what i wanted to do i wasnt looking at borrowing anymore. much to my amazement never missing a payment etc. Anyway so now im thinking if i went to Nat west after a mortgage will they adopt the same policy if i asked to increase the balance by the loan redemption amount. If i stay with Santandar whom im not exactly that overly immpressed with rate wise.
On the NW website our earnings suggest they will lend us up to £180k however i know that alot of other things are taken into consideration when it comes to the yes or no switch.our house is worth £200k
Or do i walk away from both Nat west and Santandar if possible and go somewhere new

ACG

If your looking at remortgaging, it seems daft to just consider 2 companies even if you do have the existing relationship with them.
There are loads of deals and lenders out there, get a broker to go and do a search for you - it coul be 1 of those companies come back best but its also possible that there could be a better alternative elsewhere.

kingstreet

Ask NatWest for a settlement figure for the loan and an up to date redemption figure from Santander. Order a credit file to make sure there's nothing you don't know about then pass all the data to an independent or whole market broker for a factfind and analysis and recommendation of the best deal they can find for you.

RenovationMan

If the loan is unsecured then it's usually a bad idea to consolidate it onto your mortgage as you're then turning it into a secured loan. At £10k you're virtually at a level where you could put the loan onto a 0% credit card and then look at your mortgage whenever your current deal runs out.

There will be a 2.5% to 3% balance transfer charge on the credit card, but I'd imagien that this would be a much better rate than you're paying on the loan, especially if you can get an 18 month or even 2 year 0% deal. You should factor any redemption costs into your calculations, though you'd be paying these anyway if you consolidate onto your mortgage.

The benefit of putting the loan onto a credit card is that you can pay as much as you like each month, so if you have extra money from overtime, bonuses or from freeing up cash by following some of Martin's money tips, you can put it onto the mortgage with no penalties.

You have to be very focussed though ot you could end up putting it onto the card and then just paying the 10% minimum, which wouldn't help your finances much.