Struggling to get a loan at a good rate

Puddles83

Adams18 said:

and i just want to get a reason as to what the issue or red flag is because all lenders using the same elgibility checker technology which is powered by HD descisions and owned by Experian are rejecting me.

You are searching for a unicorn.
You are NEVER going to get an answer to this.

oh, and you don’t keep getting rejected from anything as you haven’t actually applied for anything yet.

you can’t be rejected for something you haven’t applied for.

[Deleted User]

enthusiasticsaver said:

Lenders are being more selective given the economy may be going into a downturn when the furlough schemes end so this could be one reason for your decline. Pre Covid they were quite gung ho about lending so any earlier agreement you may have had may not have been scrutinised that closely. Also pre approved is not a cast iron guarantee they would have lent.  Sometimes they change their mind when they have looked closer at applications. Unless of course you actually had an offer in your hands. 

I am not sure what reason you have given for the loan but it could be they do not like you borrowing for a property on an unsecured basis as they will assume it is already mortgaged to the hilt or there is some other reason it is unmortgageable. £25k is not an insignificant amount and a lot of people would assume a secured loan would be better. It may be putting up red flags to possible lenders. Do you have another mortgage on a different property?

Other than the two reasons above and given your debt is manageable and you have a good steady income I don't know why they are not giving you favourable responses.  Have  you tried approaching the bank where your mothers mortgage currently is? I think I responded on one of your other threads to recommend caution on paying off your mums mortgage as this may affect your position in the future if you want a mortgage of your own or need to remortgage. 

Thanks for your reply 

yeah i agree with them being selective, its just august wasnt that far away and still 5 months post covid.

I put down debt consolidation as the reason from their
preselected choices.

i dont currently have any mortgages listed under my name or as a joint account.

i appreciate that preapproval is not set in stone but the market has moved towards a quotation model to give people like some type of indication.

Im not getting any indication at all not even 0/10 and when i call them they say you are likely to be denied if you made a full application but they dont know why the system wont give me a score out of ten on preapproval

the preapproval check looks at my experian data and the data on my application. Spoke to experian several times and they say your file looks excellent no red flags at all, its all reasonable.

so I might have to bite the bullet soon and do a full application even though I really dont want to risk it if i cant get some indication of likelihood for acceptance prior.

ive been told i can do the eligibility checker as many times as i want without impacting my chances.

[Deleted User]

Puddles83 said:

Adams18 said:

and i just want to get a reason as to what the issue or red flag is because all lenders using the same elgibility checker technology which is powered by HD descisions and owned by Experian are rejecting me.

You are searching for a unicorn.
You are NEVER going to get an answer to this.

oh, and you don’t keep getting rejected from anything as you haven’t actually applied for anything yet.

you can’t be rejected for something you haven’t applied for.

Doesnt hurt to try and find what the negative factor is. Because clearly its something thats not showing up from any data i have access to.

preapproval still gives a reasonable indication as it is the same as a hard check by checking your Experian credit file in detail and the info you out on the application like income, dependents, expenditures etc

not cast in stone but still a solid indicator..


and im not even getting 0/10.. im getting ‘we cant give you a reliable score’

Puddles83

Adams18 said:

Doesnt hurt to try and find what the negative factor is. Because clearly its something thats not showing up from any data i have access to.

Of course it doesn’t hurt to try,  it is a waste of time though.

You seem to think that there HAS to be a negative factor for you to be not receive a favourable score on an eligibility checker... there doesn’t. You just don’t fit the profile or criteria the lenders you are looking at have at the moment. Those same lenders will also never reveal their criteria for why they they don’t think you’re eligible. They also don’t have to reveal why they reject you if and when you actually make an application.
No amount of querying, complaining or pestering will get them to give you a clue of their lending criteria... nor will the Ombudsman - it’s been tested time and time again.

I really don’t get the point of this thread any more.

cymruchris

Do also keep in  mind that 'pre-approved' is still subject to final checks - and can still be declined. 

You mention you said its for consolidation - that implies you want to use it to pay off existing debts - that's a reason in itself that the landscape might have changed due to the risk things pose to these existing debts. I gather that lenders usually believe that a fair percentage of customers that apply for a 25k consolidation loan will run up another 25k and end up at the 50k mark - so that's also a possible (although that's not your intention I know)

strawb_shortcake

Does your bank offer pre approved loans? Both my current accounts used to offer this and every time I logged in and even went in the bank I'd be told I was pre approved for a £25k loan despite me only earning £34k. 
That said these notices have disappeared from my log in screen in recent months but I couldn't pin point when.

[Deleted User]

Puddles83 said:

Adams18 said:

Doesnt hurt to try and find what the negative factor is. Because clearly its something thats not showing up from any data i have access to.

Of course it doesn’t hurt to try,  it is a waste of time though.

You seem to think that there HAS to be a negative factor for you to be not receive a favourable score on an eligibility checker... there doesn’t. You just don’t fit the profile or criteria the lenders you are looking at have at the moment. Those same lenders will also never reveal their criteria for why they they don’t think you’re eligible. They also don’t have to reveal why they reject you if and when you actually make an application.
No amount of querying, complaining or pestering will get them to give you a clue of their lending criteria... nor will the Ombudsman - it’s been tested time and time again.

I really don’t get the point of this thread any more.

Thanks for your opinion.

[Deleted User]

annabanana82 said:

Does your bank offer pre approved loans? Both my current accounts used to offer this and every time I logged in and even went in the bank I'd be told I was pre approved for a £25k loan despite me only earning £34k. 
That said these notices have disappeared from my log in screen in recent months but I couldn't pin point when.

Yeah same here actually

i was being pestered by my bank every month about a personal loan at a personalised rate for me.

Now its not available anymore past few months!

[Deleted User]

cymruchris said:

Do also keep in  mind that 'pre-approved' is still subject to final checks - and can still be declined. 

You mention you said its for consolidation - that implies you want to use it to pay off existing debts - that's a reason in itself that the landscape might have changed due to the risk things pose to these existing debts. I gather that lenders usually believe that a fair percentage of customers that apply for a 25k consolidation loan will run up another 25k and end up at the 50k mark - so that's also a possible (although that's not your intention I know)

cymruchris said:

Do also keep in  mind that 'pre-approved' is still subject to final checks - and can still be declined. 

You mention you said its for consolidation - that implies you want to use it to pay off existing debts - that's a reason in itself that the landscape might have changed due to the risk things pose to these existing debts. I gather that lenders usually believe that a fair percentage of customers that apply for a 25k consolidation loan will run up another 25k and end up at the 50k mark - so that's also a possible (although that's not your intention I know)

Yeah ive played around with the checker a bit changing loan terms, salary and reason by same answer.

was just trying to figure out what was deemed as a viable borrower at the time

getmore4less

Adams18 said:

getmore4less said:

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.

I havent made a single application this is all elgibility checkers and soft searches

i dont have one hard enquiry on my credit file right now obviously i dont want to risk it

i want the likelihood given before i even apply

No approved loans then just guess work through the pre approval systems.

No idea how happy any lender would be for real..