Struggling to get a loan at a good rate

[Deleted User]

Okay i see whats happening now with the forum

is it jealousy? That i make 70k a year... you guys think im so rich and i shouldnt have any money issues and that im the problem

okay this makes sense now. 

I know peoppe personally that make 25k and support a family and others that make 200k+

I save 66 per cent of my salary every month as disposable income... my father died and i have an 80K mortgage to pay so my mum can keep the family home in london and not have to move because she is disabled.

why i have to explain myself i have no idea

all i want is a 25K loan that i can afford

Batesy1976

Adams18 said:

Batesy1976 said:

Adams18 said:

Batesy1976 said:

Lover_of_Lycra said:

Adams18 said:

Lover_of_Lycra said:

Adams18 said:

cymruchris said:

Score isn't important - nobody sees it but you.

There are several interpretations of a perfect history - what might be perfect to you might spook lenders - such as 'I've always paid just above the minimum payment on time forever and have never missed a payment' - that's not a perfect history for example.

There's no doubt that credit availability isn't as easy as it was pre-covid - and that's likely to stay around for some time to come. 

Salary may be 70k - but what are the debt levels? what are the credit utilisation percentages on your credit cards? have you been carrying a balance for quite a long time? lots of things will impact your 'affordability and suitability' for low rate loans. 

Like i said... from the mouths of lenders and credit specialists and the expert teams at all the CRAs they say my credit file looks perfect

ive spoken to at least two dozen agents

and from the exact same lender that first approved me for a loan and then denied me for the same loan ....my level of debt was 25 per cent lower when i was denied than when i was approved by them only a few months earlier.

so then whats changed? Absolutely nothing else.

went through all credit data with a fine comb and got many expert hands to help.

can’t think of anything else

Who exactly did you speak with at the lenders who told you that you had a “perfect credit history and score?” If it were true that you had a perfect score with a lender then you’d be offered the representative APR but you aren’t being offered that so clearly in terms of each lenders’ internal scoring you are not perfect. 

The CRA don’t lend money so how they rate you is irrelevant. I’m curious as to who these experts you e been consulting are and their roles within the CRA and lenders. 

Yes its true every lender has their own criteria

the lender who approved me then denied me did not give a reason even though I pressed hard for one


as for who I consulted... 

Experian - paid for the creditexpert subscription and spoke to several agents to get an opinion on my credit file and my personal financial detals like salary etc and to discuss my overall standing as a borrower

they all said they see no issues whatsoever and that i score highly enough according to them and no red flags plenty of positives

did the same by speaking to several agents at Transunion and then Equifax by paying Equifax for their premium service and then Transunion have a free service where they have partnered with CreditKarma for reporting and assistance

and then I signed up to checkmyfile whic showed me all my data with CRAs, Crediva and also CIFAS data and spoke to their agents and helplines by paying the subscripion

then i spoke to actual lenders and specialists at the lenders who manually assess elgibility for borrowers not just the people that sit behind the desk answering calls and saying ‘we cant provide help its all automated through yhe system”

and they also went through my credit files and gave me their expert opinion about how i score highly according to their criteria and in their professional opinion

and then i called money advice service too for their thoughts

and I spoke to some more lenders so they can chime in

but no one could tell me why the specific lender in question at first approved throughout July and August of last year had suddenly changed their mind despite my whole situation actually being better positioned than last year with improved debt levels

thus there can only be one reason, their criteria must have changed despite their agents telling me it hasnt changed

ive made over 180 credit payments without being late or missing one

electoral roll since over 15 years

24 per cent  total credit utilisation 

work in the financial industry steady job several years in role

All of that is irrelevant anyway.. im saying the same lender had all this information and nothing has changed since for them to change their mind except that my debt level is 25% better than before

As I said in my previous post, the CRA don’t lend money so what they think of your credit files and chances of borrowing money is irrelevant. They aren’t privy to the internal lending criteria of actual lenders so you’ve been wasting your time and quite possibly your money too if you’ve being paying for these opinions. 

As for those you spoke with at the lenders at those levels they do not know the internal lending policies either, only a handful of people have that kind of information. If those you did speak to really knew then they wouldn’t be telling you that you’re the perfect candidate because clearly you’re not. 

Looking at your posting history I have a feeling this thread is about to go south the same as all your others and so for that reason @Adams18 I’m out. 

I'd save your breath.

From their other posts it's clear that this is one of those people who has decided to go against the grain and attempt to ruffle a few feathers by telling everyone they're wrong and then throwing in some anecdotal evidence as "proof" of that.  It's usually off the back of them being told something they don't like, so they have to "win" by making up nonsense in an attempt to prove everyone wrong.

@Adams18 Speaking to lending departments at lenders?  Yeah, sorry, no.  They don't have the time to field customer calls and aren't frankly all that interested in it.  I doubt you even called any lenders and if you did, you certainly didn't have a long heart to heart with "lending specialists."

So now i gotta prove everything ive done as usual?

line up all the human beings ive spoken to just to make you believe?

look if you have nothing constructive to say except to call me a liar then just dont bother posting anything?

ill wait for posters that give me the benefit of the doubt and use online forums the way they are intended to be used.

Thanks for making my point.

You obviously can't do that and more importantly, neither can I.  And that's precisely why you've done it.  But remember, you were the one who came in here telling everyone they were wrong and how you were right.

Don't act all put-out, like you've done nothing wrong and now everyone is being mean to you for no reason.  You're getting this reaction because of how you chose to conduct yourself.

To paraphrase another poster "The tone of the OP sets the tone of the replies."

Stop talking rubbish

each time i authored a thread my OP has been perfectly fine with a neutral tone.

you are the problem and others like you. Not me.

instead of saying “Adam can you provide more details and any evidence to back up your post, you gone out and implied im a liar’

you have been very toxic towards me and you wouldn't behaved this way in real life if you met me face to face.

so why you feel you have to act a different way online is beyond me, oh wait maybe because you hide behind the anonymity.

i would never call a stranger looking for help a liar, whether on the forum or in real life i treat people the same way and give the benefit of the doubt.

try acting yourself and stop being fake online.

If this and your other posts are what you consider "neutral" you have a very skewed definition of the word.

BrassicWoman

turn it into a joint mortgage with your mum. then you have a much less risky secured loan. Once it's paid off you can put the property solely in her name if you wish.

[Deleted User]

BrassicWoman said:

turn it into a joint mortgage with your mum. then you have a much less risky secured loan. Once it's paid off you can put the property solely in her name if you wish.

Thanks for your suggestion, its a backup option. 

Best option is its paid for by cash and loans from me then its hers completely.

cheers

getmore4less

Adams18 said:

-taff said:

So your credit utilisation is at 24 percent? Net that's roughly 12 and half, add 25 grand to that and you're over half your wages in debt so 37 ish grand owing on a net take home of about 50. That is why you're being rejected. Companies don't care how good you look in your own head or on CRA paper. There is nothing you can do about this except reduce your current debt and make sure it's all paid on time,including any bills you might pay manually instead of direct debit.

Thanks for your reply, as I have stated several times that is not the case as the same lender accepted me when I had higher levels of debt and a slightly lower income.

my debt to income ratio is perfectly fine imo as it is a ratio of your monthly expenditure on debt repayment against your monthly income.

Some lenders take gross some take net... eitherway im at a healthy average even if I took out a 25K loan today over 5 or 7 years


the bottom line is the lender was perfectly happy before when i was in a worse situation with my debt level and income.

Same lender will be seeing your previous application.

Might just not like multiple applications in a short time.

Billy_B_North

Adams18 said:

Billy_B_North said:

Adams18 said:

Aran76 said:

I know it can be frustrating being declined when you think you should be accepted, this has happened to me before and in my experience the lender will rarely give much insight into their decision and will point you in the direction of your credit file. The lending criteria varies and I'm sure it is constantly being reviewed by lenders.

You said that you have been applying for loans "across the board" within the last 6 months, are these hard searches? In which case this in itself would be a red flag for lenders as it demonstrates desperation for credit. 

The big positive for you is your £70k salary, which should (depending on your other commitments) put you in a privileged position to drive down your debts and free up more of your earnings.

All soft searches, which is the same information pulled up by hard searches except for the caveat we all know about of course.

hey I really appreciate your response here and believing my story. 

I didnt want to take the news lying down so i just had to dig and dig and call everyone i can to get some idea of whats gone wrong for me.

the reason i make this thread is because the same lender approved me and then denied me despite my situation improving only months apart.

This might sound pompous and i dont mean it in this way but 70k a year to me is useless income if it cant help me get the loan i need because im desperate for it and know i can afford it.

i have all this disposable income and it is not helping me out of the situation im in which calls for a 25k loan at low apr.

even having a great credit file just does little for me right now when i need it the most.

very frustrating.. if only it was july 2020 again for me id get the loan

It sounds like you have no savings, which is surprising, what was behind your decision to spend everything that you earn?

It is completely irrelevant my savings, the only thing that is relevant is that I need a 25K loan now..

I can perfectly afford it

Well no, you can’t. You are spending every penny that you earn, so you have nothing extra for loan repayments. You are also finding that mainstream lenders don’t believe that you are able to easily pay it back, which is why you are having trouble getting headline rates.

You need to have your lightbulb moment, you seem to be living behind your means but to be in denial.

Sncjw

Why can't you pay your mum the money each month to her bank account if your wanting to help out.  This would mean your still. Helping but don't have the risk of a loan on your file. 

[Deleted User]

Adams18 said:

I save 66 per cent of my salary every month as disposable income..... 
all i want is a 25K loan that i can afford

I'm struggling to understand this. You save 66% of your salary, presumably net, each month. Isn't that like 3k per month?

Assuming you really can't wait 8 months to save up the 25k you need, I'm struggling to understand why you can't get an affordable 25k loan.  And if it's to pay off your mother's mortgage, which is very commendable, why borrow money in the first place, why not just pay her mortgage repayments? 

p00hsticks

Beardybaldy said:

Adams18 said:

I save 66 per cent of my salary every month as disposable income..... 
all i want is a 25K loan that i can afford

And if it's to pay off your mother's mortgage, which is very commendable, why borrow money in the first place, why not just pay her mortgage repayments? 

From what the OP says, the mortgage was in his recently deceased fathers name - presumably his mother doesn;t have the income to be able to get a mortgage on the property herself.

Nebulous2

OP - this is getting very bogged down. 

There is clearly something going on, which is impacting your ability to get a loan. You need to take the heat out of it, go back to basics and review your own situation. 

Lenders like stability. That means - being on the electoral roll. Long-term at the same address is better.  Being in steady employment. Having a history of repaying debt on time (you say you have that) 

I'm struggling to understand what you have done in terms of applications. On the one hand you have insisted every application has been a soft search. Yet you are saying you had a firm offer from a lender last year. That must have had a hard search. What happened with that offer? Did you decide not to proceed? If you did, as someone said already, they may not like multiple applications in a short timescale. How many hard searches have you showing in the last 12 months? 

So trying an eligibility checker - what does it say? Are you using generic ones, or ones on the lender's own website? Are you getting offers, but not at a percentage you like?

I pointed out on another person's thread, and you responded quite forcefully disagreeing, that the best rates tend to be for £7.5k - £15k over 3 years.  Lenders are concerned about risk. The world is an uncertain place, and the more you push out the timescale, the more uncertain it becomes. 7 years is a long time. £25k is a lot of money, although you appear to disagree.

Have you tried a checker for £15k over 3 years to see what difference that makes?