Information they need when applying for a loan

stevenjames8

Out of interest. Yesterday I rang Halifax to enquire about a loan. When asked what amount I required they asked what it was for, I replied it was for a number of things. Then they asked for a breakdown of what was being spent on what. Obviously I just gave an estimate of what was being spent i.e. £6000 on a car, £1500 home improvements. My question is do I have to show them what the money was spent on etc or prove that I had the money on these things because what if I don't spend it exactly how I said? I explained that I don't know exactly how much the car is going to be!

bigadaj

Broadly probably yes, exactly probably no, it's their money after all.

zxspeccy

In th old days the banks did care less what you spent the money on, providing you were considered a "good" risk. However nowadays banks may ask for a more specific breakdown of your borrowing, and may even require proof.

The most important thing to remember is that when you sign a loan application, you are signing to comfirm the information you have disclosed is correct (at least to the best of you knowledge). Saying the money is for car when it is in fact to clear some outstanding loan elsewhere can be considered fraud. Probably wont be an issue if you keep up the repayments, but if you default then you may be left with some difficult questions to answer.

DCFC79

We have 2 threads with the same question posted by the OP just under 2 hours apart. Heres the other thread, all thats different is the title.