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Can't get a loan due to interest only mortgage?

Hiya, this is my first post!

This is a question for my Mum really. At the moment, she has a £1200 overdraft which she keeps going overdrawn on at the beginning of the month after she's been paid, costing her over £100 a month, making her use her credit card too. Both are with Halifax.

I applied online for a loan for her from the cheapest one (went on a comparison site) and they said no. Thinking she had a poor credit rating, we opened an account with Experian and her credit score was about 800 or so, so it's an okay score.
We went to Halifax for a loan, and they refused, telling her it's because she has an interest-only mortgage and that's the only reason. I've never heard this reason before and I've looked up online and found no information whatsoever.

We don't really know what to do, so any advice would be appreciated :)

Comments

  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    Dont mention the mortgage is I/O. Ensure all other loan application questions are answered as if she is an organised geeky type. For example, non smoker, has a pension, no dependants, on voters roll, has a work and home telephone no, etc
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