NatWest Lending Policy

Jalani1

I recently had a NatWest loan application for £12,000 over 5 years declined after it had initially been approved. The reason given for the decision was that in the supporting materials I provided about my income, my work contract showed I only had 11 months remaining. The Bank wrote to me saying its lending policy meant that they did not let contract workers borrow for terms longer than their current assignment. I have been contracting for 5 years on 12 month assignments meaning that while I continue to contract I cannot borrow for more than 12 months. While I respect the Bank has the right to make its own lending decisions I am unhappy that this policy toward contract workers is not displayed online or in any borrowing literature. This means that I applied for a loan that was never going to be granted and I now have an imprint on my credit file. NatWest say they will not remove the search as it accurately reflects the fact I did apply. Given the increase in the number of contract workers the Bank's failure to mention this lending policy could potentially mean thousands of superflous credit searches for contractor applicants. Anyone else have a similar experience or any thoughts ?

opinions4u

Are you suggesting they should publish their whole lending criteria online?

That's not going to happen.

Thrugelmir

Jalani1 wrote: »

Anyone else have a similar experience or any thoughts ?

There are far too many variables and constantly changing factors for a bank to ever state their lending current policy. Added to which is commercial sensitivity.

£12k on an unsecured loan is a sizable amount to borrow.

Have you considered alternative means of finance which would be subject to whatever you plan to spend the money on. Such as a car. Where hire purchase is more suitable.

Jalani1

Thanks for the replies. The loan amount or purpose is not in question here and I certainly would not expect the Bank to set out all of its lending criteria to prospective borrowers. My point is that a contractor is not eligible for a loan if the term exceeds the time left on their assignment. I don't think its unreasonable for the Bank to make sure a customer is aware of this/eligible for the loan before taking an application. Of course this does not mean that the loan will necessarily be granted. The analogy I would make is that of a job agency not specifying that a driving licence is a prerequisite for anyone applying for a driving job they have advertised. Would they consider forwarding the CV of a non-driver to the potential employer to review....I think not