NatWest Loan

Ziggazee

I'm not sure whether I've posted this in the right place, so please feel free to move if appropriate.

I've banked with NatWest for over 20 years. I hold a current account with them (with an overdraft), a credit card, a loan, and my mortgage.

I contacted them last year to request they consolidate my existing loan, credit card and overdraft. I didn't want to borrow any further money....merely wanted to put everything in one place, with a lower monthly payment, and cancel my overdraft. They declined my loan because they said I had too many debts (I had a further credit card elsewhere as well as an Argos account).

Since then I've paid off the other credit card and Argos account. I approached them again this week asking to consolidate my lending with them and made an application over the phone which was accepted. I popped into branch to sign the paperwork and was told the money would be in my account within 48 hours. The money did not arrive, so I rang them today to be told the loan had now been declined. They haven't given me a reason for this and I am awaiting a call from them to discuss further.

Just prior to this I had contacted them to request paperwork to transfer my mortgage into the joint names of myself and my partner, and to change this from interest only to repayment. The paperwork came through stating I had requested a transfer.....but wanted to remain on interest only (incorrect)

Understandably I'm well hacked off with NatWest. I don't want to lend any further money off them, I merely want to consolidate what I do owe so I can get it paid off and not get into any further debt.

I'm just wondering whether anyone else has been in this position. I fully intend to speak with a financial adviser this week with a view to moving all of my banking from NatWest (including the mortgage). I feel really aggrieved that they have declined the loan considering I've been banking with them for so long and I'm already paying them thousands in interest every year. I have a full time (secure) job, affordability isn't a problem, and like I say I'm not wanting to borrow any more money.

_Andy_

"The paperwork came through stating I had requested a transfer.....but wanted to remain on interest only (incorrect)" - OK so ring them and ask them to change it to repayment

Ziggazee

I've done that. I was merely pointing out their incompetence.

Ziggazee

Little update. Spoke with bank this morning. Their reasoning for declining the loan is apparently because they don't feel I can afford the repayments.....utterly rudiculous.....I'm currently paying them £260 a month (and have never missed a payment) and the new payments would be £188. In addition they say they would have no control over any external debt.....do they ever have control over anyone's external debt???

I really feel they're just being greedy and want to hold onto the extra interest they're getting with the higher payments!

On the plus side tho, the complaints department upheld my complaint that they misled me and the fact that I've had to keep chasing them. They've awarded me £50 compensation :-)

Still gonna look at moving my business elsewhere.

opinions4u

I really feel they're just being greedy and want to hold onto the extra interest they're getting with the higher payments!

Higher monthly payment for the same debt usually means a shorter term. If so, they're earning less interest.

RobTang

Ziggazee wrote: »

In addition they say they would have no control over any external debt.....do they ever have control over anyone's external debt???

Their point is they cannot assume you will use it to consolidate your external debts, you could just spend the money.

Meaning they have to assume the worse case for affordability, ie they assume you will have to pay the loan and your external debts.

Ziggazee

Well, no. At the moment the payments are £135 loan, £110 credit card and £15 interest on the overdraft. The credit card payment is just over the minimum so in effect I'm only paying about £10 off the balance. it'll take years to pay it off. Similarly, the overdraft isn't going down.

The new loan would only be for 5 years.

Ziggazee

I'm not consolidating any outside debts....the loan is purely to consolidate the lending with NatWest.....to pay them off quicker. The outside debt will be tackled by me and my partner and will be paid by the end of the year.

The loan will be for the exact same amount as I owe them already....except it will be for a fixed term rather than having a credit card hanging on and on

KittenKaboodle

I was in a similar situation with HSBC a few years back and they approved my consolidation loan on the basis that rather than deposit the money in my account (to stop me dashing out and spending it) they paid off the old loan/overdraft/credit card there and then and closed them down. Also had to agree no further borrowing for a year.
Perhaps your bank would consider doing same?

miketaff1408

So you are "taking your business elsewhere".

So I presume that means you have money available to pay off your existing debt to Natwest? ie. your credit card debt, overdraft???

If your own bank won't give you a new loan, I cannot see that another institution will lend to you for the exact same reasons you were declined by Natwest. Plus you will have an extra search on yoir credit history now.