Refused loan - need advice please

tomnat · 14 November 2018 at 12:12PM

I recently applied for a personal loan with Sainsbury's bank to buy a car as my lease car is due to go back in January. I applied over the phone as I wanted to explain my circumstances to someone in person. I have an excellent credit rating and have never missed a payment on anything in my life so thought I wouldn't have a problem as I have been accepted for loans before. When I rang they just took my salary and then they wanted the cost of my mortgage, which I gave them but I explained that I don't pay towards the mortgage, my husband pays it (we have been married for 21 years and this arrangement has always worked for us as he earns more than me and I pay for food, etc, etc). They didn't ask for my actual monthly outgoings at all.
The monthly cost of the loan I was applying for was £40 per month less than the lease payment I have paid for the last 2 years so there would be no problem at all with me affording it.
They just came back and said I was refused on the grounds of affordability due to my mortgage.
They've said I can appeal but I just want to know whether it is worth me doing that as I am angry that my credit rating has now taken a hit when they didn't even take into account my outgoings or that I don't pay the mortgage.:mad:

Penelopa.Pitstop · 14 November 2018 at 12:14PM

I think it would be much easier to apply online and use half of the mortgage payment as your payment. Explaining anythign to consultant can only cause problems.

Pixie5740 · 14 November 2018 at 12:20PM

tomnat wrote: »

I recently applied for a personal loan with Sainsbury's bank to buy a car as my lease car is due to go back in January. I applied over the phone as I wanted to explain my circumstances to someone in person. I have an excellent credit rating and have never missed a payment on anything in my life so thought I wouldn't have a problem as I have been accepted for loans before. When I rang they just took my salary and then they wanted the cost of my mortgage, which I gave them but I explained that I don't pay towards the mortgage, my husband pays it (we have been married for 21 years and this arrangement has always worked for us as he earns more than me and I pay for food, etc, etc). They didn't ask for my actual monthly outgoings at all.
The monthly cost of the loan I was applying for was £40 per month less than the lease payment I have paid for the last 2 years so there would be no problem at all with me affording it.
They just came back and said I was refused on the grounds of affordability due to my mortgage.
They've said I can appeal but I just want to know whether it is worth me doing that as I am angry that my credit rating has now taken a hit when they didn't even take into account my outgoings or that I don't pay the mortgage.:mad:

If it's a joint mortgage then you have joint and several liability for the whole debt regardless of what arrangement you and your husband have had for the past 21 years.

foxy-stoat · 14 November 2018 at 12:43PM

You say your mortgage rather than joint, so is your husband on the mortgage as well?

That could affect your affordability, the fact that the loan is £40 less than your car hire isn't relevant although if your lease agreement is on your credit report with no late payments will help you.

Maybe reduce the loan amount and buy a cheaper car could be the answer.

Craig1981 · 15 November 2018 at 7:16AM

if mortgage is joint and your hubby is paying like you say, what happens if he is unable to pay (redundancy etc). you would then need to step up and make payments.

your current lease agreement would also be included in affordability

best to do an online application as said by others - any reasoning behind specific payments debt etc are not taken into consideration with consultants - they only do what you can do yourself online,

Refused loan - need advice please

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