Product transfer query

PalmSprings2024

Hello all just a quick query on whether I can be refused a product transfer if I have a default on an (unsecured) loan with the same bank? Mortgage with Barclays and original defaulted loan (in a payment plan) with Tesco Bank which was subsequently bought over by Barclays. Will they check the status of the unsecured loan and could they then refuse my product transfer? The fact I have defaulted my loan surely doesn’t impact my affordability given the payment plan is a much lower payment? Any help appreciated! Many thanks 

la531983

Not sure what would be in it for them to do so ("no sir, you have to go on the standard rate, which will cost you more and mean you are more likely to default on this too"), in any case picking a new mortgage rate with the same lender doesnt require a credit check normally (assuming you arent borrowing more or changing term)

Ayr_Rage

What the lender does or does not take into account will never normally be disclosed to the customer.

PalmSprings2024

la531983 said:

Not sure what would be in it for them to do so ("no sir, you have to go on the standard rate, which will cost you more and mean you are more likely to default on this too"), in any case picking a new mortgage rate with the same lender doesnt require a credit check normally (assuming you arent borrowing more or changing term)

Thank you this is what I had thought too but panicking slightly now that the debt has been bought by Barclays! 

ManyWays

Assuming you dont have mortgage arrears, Barclays wont do any checks if you only want a new fixed rate, not borrow more. The Tesco default wouldnt have been a problem before and this hasnt changed now Barclays own it. 

 

PalmSprings2024

ManyWays said:

Assuming you dont have mortgage arrears, Barclays wont do any checks if you only want a new fixed rate, not borrow more. The Tesco default wouldnt have been a problem before and this hasnt changed now Barclays own it. 

 

Thank you - no mortgage arrears but was concerned when Barclays bought over the Tesco debt that they’d take that into consideration 

sourcrates

Secured borrowing and unsecured borrowing are treated in very different ways, simply because one requires security, the other does not.