Strange Experience with Northern Rock....

ShakerKev

Hello

I was hoping somebody could perhaps give me an informed opinion. I and my partner have just applied to Northern Rock to additionally borrow a further amount on an exisiting loan. At the start of the call I advised fully of the amount we wished to loan and he stated that the amount was no problem pending credit checks etc.

He processed the application carried out the credit check etc and spent at least 1/2 hour helping process the application. He told us he would phone us back. He came back with the rate and payment amount and advised that it needed passing to the underwriter for final confirmation.

At this point we queried the PPI on the loan and decided that we would like to go ahead WITHOUT the PPI. At this point the gentleman became a bit short with us and quickly left the line but said he would phone back in a couple of minutes. This was 5 minutes before the office closed and I obviously abcame alittle dubious about my call back. My call came and we were told that we were not eligible for the loan because we were only authorised to borrow the amoiunt we originally had.

Now forgive me for being a little sceptical, but it felt like we were being told this as we had decided against the PPI. Is this normal? If something was already pending an underwriter's decision should this not have been picked up before the the application was processed. Especially given that they carry out a credit check which may have an adverse effect on any other applications i make.

As I say I may just be sceptical but i really do feel like if we had said yes to the PPI we would have been granted the loan!! Anybody any thoughts or similar experiences.

NB We are good customer's of NR we have our mortgage etc with them, we have bever defaulted on anythin with them either.

Rafter

Banks make about 10 times the profit from loans sold with payment protection than loans without. The 'sales' people on the phones are also targeted on selling a certain percentage of loans with PPI.

Although not much use to you now, the technique is always to accept the insurance and then cancel it within the 14 day cooling off period or once you have a piece of paper/ loan offer confirming the rate.

Suggest you call them back and find out what is going on. If they say there is a problem and you ask if taking payment protection insurance will help your application and they say yes, you can either report them to the insurance ombudsman for miselling or at least you can get your new loan and cancel your insurance in the 14 day cooling off period!

R.