Advise on credit application

candy_kidd

Sorry if I am posting in the wrong place!

My husband applied for a loan with our bank about3 months ago in his sole name and it was declined for reason we do not know. We wanting to borrow some money on a secured loan on the house to pay off all cards and loads etc and have some left to sort our garden out.

He is worried that because he did not get the load a few months ago the application will not go through please can I ask how long we should leave it before we try this large loan amount? And also if we apply for this and we're adding debt into the loan is this then taken into account when we apply?

Any help or advise would be great

Thank you

cakeforbrains

candy_kidd wrote: »

Sorry if I am posting in the wrong place!

My husband applied for a loan with our bank about3 months ago in his sole name and it was declined for reason we do not know. We wanting to borrow some money on a secured loan on the house to pay off all cards and loads etc and have some left to sort our garden out.

He is worried that because he did not get the load a few months ago the application will not go through please can I ask how long we should leave it before we try this large loan amount? And also if we apply for this and we're adding debt into the loan is this then taken into account when we apply?

Any help or advise would be great

Thank you

You need to find out what this reason was first as it's likely not to have resolved itself.

Get your reports from Experian, Equifax, and Call Credit (noddle) and assess them for anything adverse. You can sign up to Noddle for free online.

Tixy

Before considering applying for anything else then I'd start by trying to work out why he may have been declined for the last loan application.

Has he checked his credit files recently? has he missed payments on any credit accounts or had issues with his bank account conduct (going over the limit / had items bounce etc).
Did he already have a high level of debt compared to his income?

If you have a joint mortgage and so are financially associated then do you have any negatives on your credit file that could be impacting his ability to borrow?

It is usually advised to never convert unsecured debt in to secured debt, I would think very carefully before doing this as you put your house at a greater risk if you should have a change in financial circumstances.

If you do decide to consider applying for a secured loan be cautious of variable interest rates, a lot of people have found secured loans to be very expensive when their lenders had significantly increased the interest rate on such loans.

And also if we apply for this and we're adding debt into the loan is this then taken into account when we apply?

Usually lenders will consider if you can afford to service the new debt on top of all existing debts, as you may not use the extra funds for consolidation. An exception to this can be where it is the same lender as some of your existing debts (because they can ensure you pay off any loans/cards/overdrafts that you owe to them).

candy_kidd

We have looked we have noodle and nothing comes up my husband thinks that maybe his credit is maxed out hence why I was asking I have no idea if I should try to get the loan or leave it longer?

Candyapple

candy_kidd wrote: »

We have looked we have noodle and nothing comes up my husband thinks that maybe his credit is maxed out hence why I was asking I have no idea if I should try to get the loan or leave it longer?

What's your salary?

Do you have any other cards/loans/overdrafts? If so how much do you owe and what are their limits?

Are you on the electoral roll?

Have you obtained copies of your credit reports?

candy_kidd

Thank you for all your help I just called my bank to ask for more information seems that it wouldn't go though they don't take into account the debts your paying off they process the application with these in so it would be a no as the application would state we didn't earn enough money so god knows what we will do such a shame silly really ��

MallyGirl

They have to assume that you are using the new loan for something else and so you must be earning enough to be able to service your existing debts plus the new one.
I would not be securing a loan on your house - meaning you could end up homeless if you default - to do up your garden. That would be madness

cakeforbrains

candy_kidd wrote: »

Thank you for all your help I just called my bank to ask for more information seems that it wouldn't go though they don't take into account the debts your paying off they process the application with these in so it would be a no as the application would state we didn't earn enough money so god knows what we will do such a shame silly really ��

If you're having trouble with the money you owe, pop over to the Debt Free Wannabe board. They're super good at helping people figure out what to do about debts.

MABLE

I applied for a loan today with Lloyds and a straight decline. However tried Nationwide bs and accepted straight away with a 3.6 percent rate.

I have been with Lloyds for over 30 years and never any issues. Anyway there loss. Will make NW my main bank account now.