Got a £25k loan from Nationwide at 7.4% - details within

CBN

There are a lot of myths on this board about what lenders will and will not accept (eg maximum credit 50% of salary, etc) so I thought I would provide some facts on my recent experience as it may help someone.

- Earn £61k
- Homeowner (100% LTV)
- Three dependents
- Secure job
- Bank with HSBC
- Loan with HSBC for £25k (settlement figure £16k) at 9.9%
- £6k on a Barclaycard 0% for 2 years (£10k limit)
- £0k on a NatWest card (£6k limit)

I applied to Nationwide for a £25k loan for consolidating the HSBC loan and the rest on home improvements. Their soft search said ok at a rate of 7.4% and within two days the money was in my account. They did not know me before the application and did not ask for any proof of income etc.

A good experience.

gb12345

CBN wrote: »

There are a lot of myths on this board about what lenders will and will not accept (eg maximum credit 50% of salary, etc) so I thought I would provide some facts on my recent experience as it may help someone.

They aren't myths they are rules of thumb - this isn't the Nationwide, so we can't say why they decided to offer you a loan that brings your unsecured credit up to over 100% of your salary.

From experience though, in general lenders will look at c. 50% of salary for unsecured credit, but that is only one factor of the underwriting criteria. Perhaps Nationwide currently have a positive attitude to consolidation and have decided to take applicants at their word that if they say they are consolidating they actually will. I wonder what would have happened if you had put the reason for the loan as £25,000 for home improvements or similar - the result would probably have been different.

You-kip

CBN wrote: »

There are a lot of myths on this board about what lenders will and will not accept (eg maximum credit 50% of salary, etc) so I thought I would provide some facts on my recent experience as it may help someone.

- Earn £61k
- Homeowner (100% LTV)
- Three dependents
- Secure job
- Bank with HSBC
- Loan with HSBC for £25k (settlement figure £16k) at 9.9%
- £6k on a Barclaycard 0% for 2 years (£10k limit)
- £0k on a NatWest card (£6k limit)

I applied to Nationwide for a £25k loan for consolidating the HSBC loan and the rest on home improvements. Their soft search said ok at a rate of 7.4% and within two days the money was in my account. They did not know me before the application and did not ask for any proof of income etc.

A good experience.

Think you'll find most of MSE are full of Myths and without these Myths the forum would be boring place.

Its more on people's experiences I suppose which doesn't accumalate to Actual facts as each customer is different.

Its a bit like a Freebie Queue on here once one member joins the Queue more members will then join in.

bigadaj

OP by 100% ltv do you mean you have no mortgage or nor equity?

If the former then you are a very low risk with high income and good security, therefore attractive to most lenders.

opinions4u

When are you going to spend less than you earn?

You-kip

bigadaj wrote: »

OP by 100% ltv do you mean you have no mortgage or nor equity?

If the former then you are a very low risk with high income and good security, therefore attractive to most lenders.

I'm also very attractive to lenders I normally apply in branch after my modelling shoot.

kinh

CBN wrote: »

There are a lot of myths on this board about what lenders will and will not accept (eg maximum credit 50% of salary, etc) so I thought I would provide some facts on my recent experience as it may help someone.

- Earn £61k
- Homeowner (100% LTV)
- Three dependents
- Secure job
- Bank with HSBC
- Loan with HSBC for £25k (settlement figure £16k) at 9.9%
- £6k on a Barclaycard 0% for 2 years (£10k limit)
- £0k on a NatWest card (£6k limit)

I applied to Nationwide for a £25k loan for consolidating the HSBC loan and the rest on home improvements. Their soft search said ok at a rate of 7.4% and within two days the money was in my account. They did not know me before the application and did not ask for any proof of income etc.

A good experience.

Very interesting, but there's other facts too, im sure such as your age. Someone in who is 21 can be in the exactly same position as you, same credit, dependents ect, but get turned (their age, viewed as high risk)

majorwally

Was this on-line?

As I have a theory that they accept more people using on-line.

geoffky

And now for the long hard road of paying it all back...You are welcome to the temporary gratification it will bring..

_Andy_

majorwally wrote: »

Was this on-line?

As I have a theory that they accept more people using on-line.

Based on what? And why would it make sense for them to do that?

kloana

CBN wrote: »

There are a lot of myths on this board about what lenders will and will not accept (eg maximum credit 50% of salary, etc) so I thought I would provide some facts on my recent experience as it may help someone.

- Earn £61k
- Homeowner (100% LTV)
- Three dependents
- Secure job
- Bank with HSBC
- Loan with HSBC for £25k (settlement figure £16k) at 9.9%
- £6k on a Barclaycard 0% for 2 years (£10k limit)
- £0k on a NatWest card (£6k limit)

I applied to Nationwide for a £25k loan for consolidating the HSBC loan and the rest on home improvements. Their soft search said ok at a rate of 7.4% and within two days the money was in my account. They did not know me before the application and did not ask for any proof of income etc.

A good experience.

Good for you. I don't mean that sarcastically, I mean it genuinely.

But, as a relatively high earning homeowner with, evidently, a good credit history (not using your Natwest CC at all, despite the temptation of a juicy credit limit, not using all of your Barclaycard CC, experience repaying the large HSBC loan, etc.), this is hardly an eyebrow-raising situation

I'm also not sure what you mean by 100% LTV, whether it's that you own outright, or have simply slipped into negative equity. Even if it's neg.eq., it's very much the case for thousands of people out there right now. On that note, I don't think the CRAs hold any info on your level of equity (or lack of) anyway.