Should we accept this?

Gaz83

Cash_Flow wrote: »

So by your logic then the bank has also decided to lend them close to 90% of their combined salary via a unsecured loan which would go against responsible lending.

Also the OP mentioned that the bank would be canceling one of the overdraft facilities, and reducing the other so they are in this case "sure" of where some of the money is going.

Did you even bother to read the thread?

The 12.9% figure is based on taking a loan with the same bank they have a huge chunk of their debt with. Ergo, the bank can impose conditions (and they have) on closing down the OP's line of credit.

The £32,000 figure was a comment about looking elsewhere for the loan to attempt to get a better rate than 12.9%.

It's not our logic, champ, it's the banks'.

Cash_Flow

Gaz83 wrote: »

Did you even bother to read the thread?

The 12.9% figure is based on taking a loan with the same bank they have a huge chunk of their debt with. Ergo, the bank can impose conditions (and they have) on closing down the OP's line of credit.

The £32,000 figure was a comment about looking elsewhere for the loan to attempt to get a better rate than 12.9%.

I have read the thread.

My opinion remains the same though.

In this case the bank is not looking at the OP wanting to lend £32,000 as they know some of the money is going to be used to refinance.

Gaz83 wrote: »

It's not our logic, champ, it's the banks'.

Which Bank? all of them?

Gaz83

Cash_Flow wrote: »

In this case the bank is not looking at the OP wanting to lend £32,000 as they know some of the money is going to be used to refinance.

Er, that's exactly my point.

The £32,000 figure came about in a comment about trying to get a better rate than 12.9%, i.e., looking at other banks who wouldn't be able to impose conditions around debts they already hold.

In this case, a bank would look at it as borrowing £16,000 on top of an existing £16,000 debt, as they would have no assurances the OP would actually use the £16,000 to consolidate their debts.

Cash_Flow

Gaz83 wrote: »

Er, that's exactly my point.

The £32,000 figure came about in a comment about trying to get a bette looking at other banks who wouldn't be able to impose conditions around debts they already hold.

In this case, a bank would look at it as borrowing £16,000 on top of an existing £16,000 debt, as they would have no assurances the OP would actually use the £16,000 to consolidate their debts.

If banks always looked from the viewpoint that consolidation loans were to be considered as additional borrowing, then most loans would be declined on the basis of affordability.