Personal Loan - unreasonable evidence requirements?

[Gallus]

Hi

I am currently in the application process for a personal loan. All requirements have been sent but they seem to be having issue with me being in a joint fixed term (1 year) tenancy lease with my girlfriend. I have supplied the lease agreement but their argument is that if my girlfriend left or died I would be liable for the rent on the lease.

For this they requested a letter from the renting management company that I and my girlfriend each pay half the rent amount monthly, which I supplied. Now they want a letter again from the management company declaring that we are both obliged to pay half the rent each to the company with letter addressed to the bank. Have contacted management company but don't know if they are going to be comfortable issuing a declaration to the bank.

Just wondering if this is standard practice in loan assessment evidence as seems unreasonable given that this is a 12 month lease and we are both 29 in low risk desk based jobs with no risky sporting activities participated in. We have also been renting the same apartment for the last 3 years from the same company under 12 month fixed term leases (in the 4th lease now).

Even with the above my thoughts were that even if one party left the apartment they are still liable under the contract for the monthly rent or one party died they liability would go to that person's estate?

Any help appreciated on this I am now on the last day of the 30 days for the loan assessment and they have come back with this request. Also all delays have been on their side, any request to me has been fulfilled within 24 hours.

Thanks
Gallus

 

[Gerry Canning]

On the presumption its a Bank .

1. Personal loans are very hard to get through.
2. Looks like @ some stage some underwriter got worried about your repayment capacity should you have to carry full payment , ie you couldn,t afford loan repayments + full lease.
(They may have hit that issue with other customers, so consider that a Risk on all loans)

Looks like they just don,t want to approve with their perceived issue on lease.

4. Have you a Credit Union account ? they seem to be open to sensible loan applications.

 

[Paulie74]

Hi Gallus, I’ve had similar issues with BOI when applying for a credit card, originally they requested 3 months statements from my current credit card provider-I queried this, and they advised they needed to see I was making repayments, I suggested the ICB would be of assistance to them in any checks they required, they said they would be doing that too!! I provided the credit card statements and they then requested a whole host of information including my employment contract, payslips and letters from my employer regarding my tenure etc.

(I can partially understand this, as I bank with UB and drop fund into our joint account fortnightly so it’s not deposited by my employer directly)

Now, I was simply wishing to do a balance transfer with this new card application(approx €1200), and I have a joint current account/mortgage with BOI for over 13 years with a hefty balance (part of which I have since used to clear the CC I was wishing to transfer to them). They can see the balance on the account, they can see funds are credited regularly, but they advised me that having a substantial balance in a current account does not mean I would use it to pay off any CC balance I would have with them!!


Anyhow, the piecemeal nature of the request from BOI were most annoying as well as hugely intrusive. I requested the return the information I provided them and close the application. Moving current account etc is the next step, but that’s such a bother when trying to align direct debits etc


I’d give up with your current potential lender and try elsewhere. Good Luck.