Declined online from Tesco, is my bank more likely to approve loan?

Dasmike

I'm looking to borrow £11,500 to buy a car, and hadn't assumed I'd have any problems getting a loan. However, I applied online via Tesco Bank and was declined. I realise now this is probably due to not being on the electoral roll (forgot to update when I moved out of my parents' house).

I have a mortgage (with Santander), and my bank account with Halifax. I've never missed any payments on my mortgage or any other credit agreement, and have c.£10k in my Halifax savings account (and am never overdrawn). What I want to know is are Halifax likely to approve a loan after I've already been declined by Tesco Bank?

I should also add that I've checked my credit rating with Experian, and it's "Good", but isn't in the "Excellent" bracket. Any thoughts??

Thrugelmir

Electoral roll is a major negative. Something that you should rectify.

YorkshireBoy

How long has the mortgage been running?
And when did you move out of your parents' house?

Dasmike

Yep, I realise now that the electoral roll is a big deal. I've now contacted the council to update my records.

The mortgage has been running since May 2010. And that's when I moved from my parents - I know, very stupid not to update before now. I believe I was still registered at their address fora while, but they noted on a form at some point that I no longer lived there.

Dasmike

I'm going to visit my Halifax branch tomorrow to speak to someone, I'm just wondering if it'll make any difference with it being my bank (who should have a better understanding of my reliability I would assume), vs just applying with Tesco Bank who don't know me from Adam.

YorkshireBoy

Do Halifax send correspondence about your accounts to your residential address, or that of your parents?

Dasmike

My current residential address.

YorkshireBoy

I'd get yourself on the ER (and verify by ordering your credit reports from all 3 CRAs in a couple of months) before applying anywhere, even Halifax. Because if they decline you, you've two recent loan searches and that may put off whoever you approach for your third attempt.


Presumably the c£10K savings are earmarked for something else?...or are you using them towards the car as well?

Dasmike

I'm using part of it towards the car, with some left over as safety net savings. I expected your answer, but am still disappointed with having to wait as the perfect car I want is available right now at an excellent price. Not something that will wait unfortunately.

Whiner

Dasmike wrote: »

I'm using part of it towards the car, with some left over as safety net savings. I expected your answer, but am still disappointed with having to wait as the perfect car I want is available right now at an excellent price. Not something that will wait unfortunately.

Another car will come along. It is merely metal.

chalkie99

Dasmike wrote: »

I'm using part of it towards the car, with some left over as safety net savings.

That's an alarm bell!

You want to borrow money to have as savings?

If you are burning through your income already how are you going to finance the repayments and how are you going to make them when the mortgage increases, as it is almost certain to, before the loan is paid.