Refused Loan Don't Pay UK Tax

neilwill

I Wondered if anyone could offer me some advice, I applied for a loan with my bank, I have good credit and a good income however they stated because I do not pay UK tax as I work in Afghanistan they are unable to support my loan application as it's within there lending terms.

Do all UK banks have this in the lending terms (you must be paying UK tax) or is it just Natwest? thanks in advance.

SeanG79

How does the bank know where you are paying tax and what does it have to do with the loan?

Are you on the electoral roll at your home address in the UK? Also is your salary paid into your UK bank account or are you paid abroad? Those 2 things are more likely the reason for the decline than where you pay tax.

neilwill

I had to submit my pay slips which is paid in $ however yes I am on the electoral roll, yes I am paid into my UK bank account from my American company, I was initially declined because they said it was because I was paid in $ from and American company however I logged a complaint and they admitted they were wrong but reading the letter of apology which was sent it states the following.

"Subsequent to this letter if we are advised that you are not subject to UK tax then unfortunately the loan application would be declined inline with the banks lending criteria."

However I have credit card since working abroad, car finance however the bank will say no because I don't pay UK tax.

SeanG79

Must be honest that's the first I have heard of that, hopefully someone else with prior experience or knowledge of this can help you.

iolanthe07

the loan application would be declined inline with the bank's lending criteria.

It doesn't follow that all banks have the same lending criteria, so it may be worth trying someone else. Too many application are not a good idea, though.

FireWyrm

Actually, I think you might find that the real issue is that you work in Afganistan. For obvious reasons, the bank is concerned about how and where money is being sent - they have to account for any suspicions of money laundering. While I am sure your activities are completely legal an above board...the bank probably doesnt want to bother with your custom - there are plenty of other fish in the sea.

Either try someone else, or abandon the idea. My guess is that you wont get anywhere with a reputable lender.

kylararlin

As far as I'm aware it is fairly usual for this to be written into the credit risk policies for unsecured loans, they will have little recourse if you stay abroad and simply close the UK bank accounts.

RobTang

Declaring yourself a UK resident (ie on electoral roll) and not paying UK tax is very dodgy.

I would hazard its a big enough of a red flag that they wouldn't want to touch you.