Bank Loan

D

deesmith

Registered User
Messages
47
Hi,

Does anyone know what the last stage of a bank's credit check is? My HTB applied for a loan and earns more than enough to repay and has absolutely no other borrowings. The bank told us for weeks that it was being approved and they sent out the credit agreement, etc to sign which we returned and they recieved. Then at the very very last minute after we were told it would be in the bank they said the application had been declined. has anyone any idea of what caused this or what happened?
 
Did he previously have other borrowings which he missed payments on - stuff that would show up on a check of his credit history? Even minor ones a few years back could cause problems.

Or perhaps they stress-tested the loan and he couldn't cope if the rates went up? Is it a large loan? Do you have a mortgage as well?

Just some ideas.
 
This is exactly where he is at. We have no mortgage. He had one loan 4 years ago for 4500 when he was earning 12000 pa. He never missed one payment. It was with UB as well. Never had any other loan. The loan was for 12000 and he earns 37500 with annual bonuses of about 2/3k.
 
That seems strange - it's practically the same as the loans I've had in the past (I paid my 5k one off a year early) and I was loaned 12k over 5 years so that I could go back to college and earn nothing for a year! I've never earned more than 25k per annum in my life.

Can he talk to the bank about it? Or check his credit history himself and see if there are any inaccuracies on it?
 
Yea I will have to get him to check his credit history, there is absolutely nothing that can show up. No late payments or anything. Her paid that 4.5k off in one year and it was a struggle but he did it.

It just baffles me.
 
Did he ever have a hire purchase loan for say TV, suite of furniture. A lot of people dont realise these are also registered with ICB.
 
He has never had anything other than that 4.5k loan 4 or 5 years ago. Never a car loan, TV, credit card - absolutely nothing!
 
Thats strange alright, id get him to check his ICB anyway just to be sure.

Will the bank give you any more info?
 
We checked his ICB and there was nothing wrong at all. I went ot my bank yesterday and I got the loan on my account no problem at all. Sorted in 15 minutes. Absolutely unbelievable. Then to top it all off yesterday evening UB rang and said they had reviewed and the loan had been approved. I basically told her not to bother that we went elseehere. I said we were annoyed over the fact that we had gotten no reason and all she said was that it wasnt our fault but wouldnt admit to them making an error. Well thats was a costly error because all accounts will now be shut with them and there is not a chance we would take out our mortgage with them when the time comes.
thanks everyone for all the advice
 
I have done and my bank was most helpful. Even arranged interest only until we take out our mortage!
 
No, it was her fiancé's bank that declined HIM in error. Deesmith's bank approved it for her.
 
Yes exactly sorry thats what I am saying! talk about confusing everyone!!! No my HTB bank refused him through their own error. It just confused us so much and they wouldnt go back on it until we kicked up a stink with a manager. honestly banks! i give up!!!
 
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