Bank loan - two loans in quick succession for 35k with no human checks?

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A close friend has made two loan requests via the "worlds largest bank" app - one for 15k and one for 20k. This was used for gambling. It was all automated.
I am very surprised they can approve such a large loan with no wait period or human checks for affordability/proof/loan use etc. They receive 1800 pm and spend 1300 pm on expenses.
They are in a bit of a pickle now as they have recently been approved and accepted for a house (currently rent) and will struggle to make payments.
My question is:
1. Is there any recourse in ensuring the bank does its due diligence for a loan they can afford?
2. The quick succession of large loan requests should surely flag as risk for further review?
3. What they should do now as they are worried the repayments when they pay the mortgage will not be always achievable
I am very surprised they can approve such a large loan with no wait period or human checks for affordability/proof/loan use etc. They receive 1800 pm and spend 1300 pm on expenses.
They are in a bit of a pickle now as they have recently been approved and accepted for a house (currently rent) and will struggle to make payments.
My question is:
1. Is there any recourse in ensuring the bank does its due diligence for a loan they can afford?
2. The quick succession of large loan requests should surely flag as risk for further review?
3. What they should do now as they are worried the repayments when they pay the mortgage will not be always achievable
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2. If the requests were affordable, according to the details provided, I don't believe the speed of reapplications is particularly relevant to whether loans should have been declined. At best it's a fraud issue, that will be paid for by the bank.
3. They should ditch the mortgage application. They clearly cannot afford to repay these loans and a mortgage and by continuing this farce, they're just setting themselves up for a lot of stress and trouble when they eventually get evicted. Bear in mind that being accepted in principle for a mortgage doesn't mean they won't be checked again before completion, as lenders are worried about exactly this sort of thing.
At best, even if they go to the FOS, they will be required to repay the capital. There is no free lunch as they say. That alone will torpedo any chance of a mortgage, and they will need to declare this debt to any lender, broker or solicitor they deal with.
Tell them to speak to a debt charity ASAP.
Edit: And a gambling charity
So your friend needs to talk to their mortgage advisor and rescind their application before the mortgage provider picks it up and rejects them.
Then speak to a gambling charity and debt charity like stepchange. Not a debt company that offer to reduce their debt by 70% and sells them an IVA.
If they gave their income and expenditure as per your post, then it would have resulted in an immediate decline, as neither loan would have been affordable, so its safe to say the applicant was less than truthful, when they applied (not unknown with gamblers).
Lenders have no way of knowing your income, although they can ask for proof, they mainly rely on what you put in your application, an id check will confirm your identity, a credit check will show how you manage your money, but if they put that they earn 60k a year, then that`s the figure the lender must use as part of the decision making process.
However two large loans virtually at the same time should have rang alarm bells, unless, as said above, the applicant exaggerated their income sufficiently, to make it seem affordable.
As others have commented, the mortgage application process, in the majority of cases, requires a final credit check prior to the release of funds, if these loans are showing on the persons credit file at that time, then the game is over, and there will be no mortgage.
As things stand, even if, by some miracle, it was approved, their income is insufficient to meet all there financial commitments, so either the mortgage, the loans, or most likely both, will end up in default, and then repossession and possible bankruptcy will follow, if this is a legitimate post, then that will be the likely course of events, if it isn`t, thank you for watching.
More than a third of IVA`s fail....fact.
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I am curious if the FOS would entertain the case. Seems like a case of mislending and not performing enough due-diligence to me. The loans are at 16% apr! Sounds like the company (not china) place all the onus on the loan applicant to ensure its affordable.
i appreciate the seriousness of your post and the other responses and will relay the facts to them.
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