getting a loan against a fixed deposit ( 1 year fixed savings bond)

freakykid

hello there, i'm a newbie so i hope i'm doing this right!

ok so i have some funds tied up until october in a 1 year bond from barclays.

i'm currently not working or claiming benefits so i can't get any kind of loan, and barclays won't extend my overdraft even though they have a five figure sum of mine under their control, which to me is absolutely crazy!

"computer says no!" based on their "system". i foolishly thought that as banks are such money grabbers that they would have something in place to cater for people like me but i guess that there aren't that many of us about.

so how can i borrow money against this deposit?, is it possible at all out there in the world of finance? (legit finance that is!)

i'm talking about less than 20% of the amount that will be freed up in 7 months time.

thanks in advance for any feedback, if anyone can post links to potential lenders that would be wonderful, have a nice day all

Caz3121

Have you spoken to Barclays re accessing funds?
their site says "If your circumstances have changed significantly, perhaps due to illness, a relationship ending or financial difficulties, you might be able to access money in a savings account that doesn’t normally allow withdrawals."
https://www.barclays.co.uk/savings/bonds/1-year-fixed-rate-savings-bond/#ref4

BoGoF

You have zero income so why tie up your capital for 12 months? Nobody is going to lend to you and there is nothing 'crazy' about Barclays approach.

Grumpy_chap

freakykid said:

hello there, i'm a newbie so i hope i'm doing this right!

ok so i have some funds tied up until october in a 1 year bond from barclays.

i'm currently not working or claiming benefits so i can't get any kind of loan, and barclays won't extend my overdraft even though they have a five figure sum of mine under their control, which to me is absolutely crazy!

"computer says no!" based on their "system". i foolishly thought that as banks are such money grabbers that they would have something in place to cater for people like me but i guess that there aren't that many of us about.

so how can i borrow money against this deposit?, is it possible at all out there in the world of finance? (legit finance that is!)

i'm talking about less than 20% of the amount that will be freed up in 7 months time.

thanks in advance for any feedback, if anyone can post links to potential lenders that would be wonderful, have a nice day all

Welcome to the forum

It is not common to be able to borrow against savings.  Lenders typically treat the loan application as though you need money over and above the amount of savings held.  There is nothing to stop you spending all the savings on whatever you choose to spend them. 
That is probably not an unreasonable assessment - consider a £10k loan (against £20k savings) for a car.  How does the bank know whether the individual will spend only the £10k loan on the car, or spend the full £30k on the car?

It is unusual that saving interest (after tax, though I note the tax free savings options) will exceed the cost of the loan on the same value of money.  It is usually more MSE to use the savings than incur the higher interest rate on the borrowing.

What are the penalties on the bond if t money is drawn earlier than originally envisaged?

retiredbanker1

You will not be able to borrow against your savings.
The reason being is that there is nothing stopping you telling Barclays that you want your funds early - pay any penalty then spend the lot straight away - leaving your loan in limbo.

This plus your income situation shows Barclays have acted reasonably IMO.