Affordability - declined.

Doolie_2 · 19 January 2016 at 2:19PM

So a bit of background recently completed on our first house in Oct, so figured I'd try and get my finances in order, other than my mortgage, interest free deal on the sofa (buy now pay later - not due till Oct), and my postgrad loan (details below) I have no other debt.

I took out a loan in 2010 from Natwest for my postgraduate studies (Legal Practice Course). The loan was about £24k on a fixed rate of about 8.7% :eek::eek::eek: I pay this back monthly at about £360 pcm. Now that the loan is under £15k with about 51 months left to pay it back I thought I'd try and re-finance it with Natwest for one of their 4.9% loans. I went in today and the repayments would of been about £310 a month (therefore saving me £50 pcm). However when the advisor did the figures they told me the computer failed me on affordability which is ridiculous, as its less than I am paying now. He and his branch manager agreed but said unfortunately there was nothing more that they could do for me.

Anyone got any advice?

After bills and my share of the mortgage my monthly available cash is £1,250 (before taking the loan into account).

lee111s · 19 January 2016 at 2:23PM

It wouldn't make business sense for Natwest to give you a loan paying 4.9% interest when you already owe them money paying 8.7% interest.

So while it may have said affordability, I wouldn't be surprised if that was just the computer's way of saying, we're not stupid enough to lend you at a rate less than what you contractually have to pay us back at.