Refused loan but don't know why

smallredbus

Hi

Me and my partner bought a house in January which we are renovating. We took out a small loan to help with the cost but have now have realised we need more money. We went to the bank and applied to top up our loan but it's been turned down. They have said it's not due to affordability, or due to credit rating, it's because of something else which they can't tell us in case we use the information fraudulently to get a loan elsewhere. Does anyone have any idea what might be causing us to get turned and what we could do? Thank you.

Bermonia

There’s either some kind of fraud related marker (not sure that’d be the case given what they did tell you) or your total borrowing (potential borrowing) is over a limit they feel comforatbale with - when doing loans we were never allowed to advise when this was the case.

foxy-stoat

Get copies of your credit files and the loan application and see if you have input any information incorrectly.

BoGoF

Some figures would help put it into context....income vs current debt levels

enthusiasticsaver

I am surprised it is not on affordability grounds given presumably you took your mortgage out in January and then borrowed a further amount presumably in February and are now applying to borrow more. That smacks of desperation which many lenders shy away from and most advice is you do not keep applying for new loans but wait for a decent period between applications. That is usually at least 6 months not a few weeks.

enthusiasticsaver

What is your income?

How much did you borrow on the mortgage and loan and how much equity do you have on the house?

What other debt do you have?

What is the new loan amount?

Felix11

As foxy-stoat suggested, copies of your credit file would be helpful. Experian reports specifically tell you what positive and negative factors are on your report. For example, it could be that you're applying for multiple credit facilities in a short space of time. For example, my own report says "you have applied for more than 3 credit facilities in the last 6 months" - which is negative. It doesn't matter that my score is sky high in the 900's, it is still a red flag.

Bermonia

It doesn’t matter that your score is in the 900’s as it is made up lol

Ian_875

I might be miles off, but did you change your address on the electoral register when you moved?

foxy-stoat

Just wait 6 months and apply again for your loan, spend this time saving up what the loan payments would be, hopefully you should have a couple of thousand in the bank when you go for the next loan.