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If declined twice for debt consolidation what next?

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  • ACG
    ACG Posts: 24,555 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    There are a couple of lenders who are typically quite good with debt consolidation. One of them is a lender you are already with. Is there a reason why he/she is avoiding them?

    Personally if Clydesdale decline you, I would be asking for your money back and explain that you have lost confidence in them due to their next recommendation being a lender where you do not fit criteria. If they do not agree to refund you then I would raise a complaint.

    I am taking your word for the fact that you do not fit criteria with Barclays, again I am working off limited information.

    In terms of a second charge broker there are master brokers and then Mortgage brokers (like the one you have for example) who can refer the lead in to the Master broker - it costs you no more to go one way or the other usually.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • pepperpop
    pepperpop Posts: 37 Forumite
    ACG wrote: »
    There are a couple of lenders who are typically quite good with debt consolidation. One of them is a lender you are already with. Is there a reason why he/she is avoiding them?

    Personally if Clydesdale decline you, I would be asking for your money back and explain that you have lost confidence in them due to their next recommendation being a lender where you do not fit criteria. If they do not agree to refund you then I would raise a complaint.

    I am taking your word for the fact that you do not fit criteria with Barclays, again I am working off limited information.

    In terms of a second charge broker there are master brokers and then Mortgage brokers (like the one you have for example) who can refer the lead in to the Master broker - it costs you no more to go one way or the other usually.

    Our broker explained to us that he couldn't go to our lender and that we would have to do that. The information re Barclays is purely what I have read on the Barclays intermediary website. The broker has never mentioned secured loans to us.

    I thank you for your advice ACG as it makes sense to me. We have been just about breaking even for quite a long time now and the interest we are paying is excessive and we are not managing to reduce it so while not ideal we feel consolidating is the best option for us. We may well be successful with Clydesdale but I guess we have lost confidence because the first place the broker tried declined us and we have never been declined before (however not had so much unsecured debt before).

    There doesn't appear to be a lot of difference in the monthly repayments for the additional lending with our current lender and the monthly payments showing up for a secured loan on comparisons sites (although I am aware that we may not got those rates if we apply - we have no CCJs DMPs or IVAs). From what I have read online my understanding is its much easier to get a secured loan?

    Secured loans are new to me and I wondered if there were any more risky than the additional lending? We initially decided to go for a remortgage for the whole amount as the repayments worked out cheaper per month and felt that would enable us to get some savings together and then start overpaying. However if we try our current lender or a secured loan then we save around £2500 on early repayment fees on our current mortgage.

    I am wondering if we can apply for a secured loan sooner if need be in view of the hard credit searches? Every month that passes we are paying a huge amount of interest so the sooner we get something sorted out the better then we can actually start chipping away at the debt. Thanks again for any advice you can offer:)
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