Turned down for a loan - not sure why but what next?

SunshineLeith

Even with a good credit score I was turned down for a bank loan of 25K over 5 years for urgent home improvements. Once these improvements are made we can move out of a rental and save around £1800 per month, so the repayments will be easily affordable.
 In my early 60's I suspect age may be the issue, but when I retire then I will sell one of my two properties with no mortgage on either. I can't do this just yet as my partner is undergoing medical treatment near one which means we need both. 
Really don't want to go down the Equity Release route but struggling to see an alternative. All very frustrating but any suggestions gratefully received.

comeandgo

Could you not get a mortgage against one of your properties?

MattMattMattUK

SunshineLeith said:

Even with a good credit score

Your score is irrelevant, no one apart from you sees it, ignore it.

SunshineLeith said:

I was turned down for a bank loan of 25K over 5 years for urgent home improvements. Once these improvements are made we can move out of a rental and save around £1800 per month, so the repayments will be easily affordable.

Can you "easily afford" the payments now? That is the only measure that the banks can use, they cannot and will not make a lending decision based on something that might happen in the future.

SunshineLeith said:

 In my early 60's I suspect age may be the issue, but when I retire then I will sell one of my two properties with no mortgage on either. I can't do this just yet as my partner is undergoing medical treatment near one which means we need both. 

Age is unlikely to be the issue with a five year loan, it will likely be affordability which takes account of current income and expenditure and ignores assets.

SunshineLeith said:

Really don't want to go down the Equity Release route but struggling to see an alternative. All very frustrating but any suggestions gratefully received.

Equity release would likely be throwing money away. Would it not be cheaper to sell one of the properties and use hotel/B&B accommodation as required, rather than either pay to rent or use equity release? Can you not move into the other habitable home and bin the rental?

SunshineLeith

Not tried that as I thought I may run into the same problems re my age and affordability checks. Never had a mortgage on either one.

SunshineLeith

We can't sell the flat for at least a year - cladding issues being fixed. Really no option but to keep both properties for the next year or two. I will certainly be working for those years and without the rent to pay, we will have enough to pay off any loan but need the 25k in the next couple of months to get the house habitable.

MalMonroe

SunshineLeith said:

Not tried that as I thought I may run into the same problems re my age and affordability checks. Never had a mortgage on either one.

Your age isn't a problem. I'm 73 and applying for a mortgage this year. You're just a spring chicken!