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help re finance refusal

41
Found 6th Apr 2013
We recently applied for credit with B&Q (who use Hitatchi Capital) for a new kitchen. We were refused. We contacted experian and our credit score is excellent (965). We are council tenants and told the store this before starting the whole process. They said this wouldnt be a problem. Anyway, after being refused, we wrote them a letter asking why and today we found out by letter that it IS because we are council. Apparently they (hitatchi) dont think we should improve a home thats not techinaly ours.
B&Q are now saying they know that council tenants wont be accepted (even though thats not what they told us at the beginning). our bank has offered us loans in the past but im annoyed as the finance we applied for was 0%.
Where do we go from here? Is it right what they are doing? surely its up to us if we want to improve our home (we have in the past), and not the finance company. We have a decent income and an excellent credit score.
Any advice would be appreciated. Thank you x
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how much you want to borrow?

do you have any defaults on your credit history

just go for a % credit card
we have no defaults. we were borrowing £6500. I didnt think of a credit card. how long are the 0% for?
go over to money saving expert.com best place to find that info.

% 16-18 months
we were going to get finance over 4 years, making monthly payments approx £135
They're taking a long view of the risk. If you were to default as a homeowner, they can go to court and get a charging order against the property so that when it's sold, they at least have a chance of recovering some or all of the debt. They can't do that for a council property so if you default and have no money/assets to seize they lose.
hocka

we were going to get finance over 4 years, making monthly payments approx … we were going to get finance over 4 years, making monthly payments approx £135



you could do the same on a credit card then balance transfer when the 0% runs out..
you need to know what your doing tho best not to spend once you've made your big purchase
im looking on mse at the 0% cards (ie Halifax) but it dosent say how much they give you on the card? I need around £6000.
Kinda agree with refurbing a house that isn't yours being slightly unwise.

However, I know from experience that B&Q are expensive for kitchens, as I'm getting one done on Monday - not from them! I'm getting mine from IKEA, worth noting we got 0% over 2 years with them - I'd also doubt they'd be as specific as Hitachi seem to be.

£6.5k - is that including fitting?
£7500 inc fitting, 50% of that price was materials rest was for fitting. shocking I know. We class our home as a home, our home, and want it to be nice/comfortable. We dont want to buy our home and are happy to stay here as long as possible. The council give permission to upgrade, as long as we are happy to pay I cant see why there is a problem. The loan wasnt to be secured on the house.
when you apply for a c/c do you only find out the amount once it is passed?
why not look into buying the council property and then do improvements on it, because if you do the improvements before then the surveyors value your property and the improvements you do to it which increases the price therefor you are paying more for everything.. couldnt you save up for a deposit for a mortgage? £6500 is expensive to fit a kitchen which potentially you could lose out on? just my thought, thats all x
we dont want to buy, never have, not an option for us xx
ok no problem xx
when you apply for a c/c do you only find out the amount once it is passed?
hocka

when you apply for a c/c do you only find out the amount once it is … when you apply for a c/c do you only find out the amount once it is passed?


yes after the app
cigbunt

yes after the app



what if its not enough?
I also have a good credit score and got my first credit card last year with a 12 month 0% interest rate on purchases but was only allowed £3200. Im now on my second card which i transfered my balance with a 24month 0% rate. On my second card my limit went up to £4600.
could get 2. or just get a personal loan.

why is buying out the question if you earn enough and have a good rating?

personally i would never substantial spend money on a rented house
hocka

The loan wasnt to be secured on the house.



The refusal isn't about securing the loan on the house - as it's not your property, you couldn't have a secured loan anyway. It's about the exposure of the finance company if you default. It's a simple commercial decision.
You dont find out till you complete the application. and remember every card you apply for affects your credit score. Get turned down too many times the new searchs can see you've been turned down
if you do go for a % credit card don't be tempted to make the minimum payments else you'll have the debt for ages.

easy to fall in to a trap if you don't know how to use them, if you miss payments or credit score goes down you probably wont be accepted for a balance transfer card after you 18/16 month period. so there are risk
i think the personal loan way is best. thanks for your advice guys x
Never lived in a council property before but is it normal to pay for your own kitchen to be fitted? - Is there a chance the council can kick you out?
aircanman

Never lived in a council property before but is it normal to pay for your … Never lived in a council property before but is it normal to pay for your own kitchen to be fitted? - Is there a chance the council can kick you out?



the kitchen we have was fitted by the council, it is in good condition. I personally prefered another though. Council can 'kick people out' but not if youre a decent tenant (like me! lol) xxxx
hocka

the kitchen we have was fitted by the council, it is in good condition. I … the kitchen we have was fitted by the council, it is in good condition. I personally prefered another though. Council can 'kick people out' but not if youre a decent tenant (like me! lol) xxxx



You will find that the 0% finance co will be weary because you have no collateral, you could scarper and they would have no claim at the property. The funny thing is you will most likely be approved for a loan or credit card at 0% no problem, but if it were me I wouldn't be fitting a nice kitchen into a property I didn't own.

+ don't be fooled by 0% deals, they are usually subsidized heavily by the product, think DFS. Get your CC or Loan then hunt about, get them competing for your business.
Perhaps B&Q are following the current government's line - welfare housing is for the desperate and not those who are able to spend £7,500 on a house they don't own?
pghstochaj

Perhaps B&Q are following the current government's line - welfare housing … Perhaps B&Q are following the current government's line - welfare housing is for the desperate and not those who are able to spend £7,500 on a house they don't own?



WELFARE HOUSING? FOR THE DESPERATE? ha ha ha ha ha,

FYI we have spent way more than £7500 on our home, and will continue to do so. It is OUR CHOICE, go and troll elsewhere. X)
You have to get written permission from the Council before making improvements, In general they'll agree but do it without permission and they could technically make you take it out and restore it to it's original state or bill you the cost etc.. Good luck.
shauneco

You have to get written permission from the Council before making … You have to get written permission from the Council before making improvements, In general they'll agree but do it without permission and they could technically make you take it out and restore it to it's original state or bill you the cost etc.. Good luck.



already done! (_;)
got a loan with these for a watch from beaverbrooks twice never had trouble its naughty what they done to you
hocka

£7500 inc fitting, 50% of that price was materials rest was for fitting. … £7500 inc fitting, 50% of that price was materials rest was for fitting. shocking I know. We class our home as a home, our home, and want it to be nice/comfortable. We dont want to buy our home and are happy to stay here as long as possible. The council give permission to upgrade, as long as we are happy to pay I cant see why there is a problem. The loan wasnt to be secured on the house.



you really want to look elsewhere imo, 3.5k for fitting is absolutely shocking, our carpenter cost £150 per day, he took 2 days to install the kitchen and flooring, i did rip the old one out to save costs , we got our kitchen from howdens, the cost was similar to homebase/b+q but we got oak doors instead of chipboard ones that b+q and homebase were quoting for
The finance company can do what they like regardless of whether your council or not. It's their money and they decide who to give it to
deanos

you really want to look elsewhere imo, 3.5k for fitting is absolutely … you really want to look elsewhere imo, 3.5k for fitting is absolutely shocking, our carpenter cost £150 per day, he took 2 days to install the kitchen and flooring, i did rip the old one out to save costs , we got our kitchen from howdens, the cost was similar to homebase/b+q but we got oak doors instead of chipboard ones that b+q and homebase were quoting for


deanos

you really want to look elsewhere imo, 3.5k for fitting is absolutely … you really want to look elsewhere imo, 3.5k for fitting is absolutely shocking, our carpenter cost £150 per day, he took 2 days to install the kitchen and flooring, i did rip the old one out to save costs , we got our kitchen from howdens, the cost was similar to homebase/b+q but we got oak doors instead of chipboard ones that b+q and homebase were quoting for



Defo agree, we are looking at Howdens and adding onto what we have already, we have a great kitchen fitter, Im sure it will be alot less than B&Q xx
ashmac

got a loan with these for a watch from beaverbrooks twice never had … got a loan with these for a watch from beaverbrooks twice never had trouble its naughty what they done to you



I would be ok if they had told us upfront like Next (they only fit kitchens in privatley owned homes). But our time was wasted and now we are told B&Q should have known, some staff say they do, some say they dont, not a professional outfit by the look of it, glad we avoided them, hopefully Howdens will be alot cheaper!
I'm not sure I'm following this. You've got a great kitchen fitter but you're complaining that B&Q turned you down for fitting that would have cost you £3.5k? And you're only adding units to what you have already but don't like that B&Q turned you down for units that would have cost you £4k?
ceres

I'm not sure I'm following this. You've got a great kitchen fitter but … I'm not sure I'm following this. You've got a great kitchen fitter but you're complaining that B&Q turned you down for fitting that would have cost you £3.5k? And you're only adding units to what you have already but don't like that B&Q turned you down for units that would have cost you £4k?



no, our option A was to look at a new fitted kitchen, fully fitted. our option B was to add to what we have, depending on what we liked best.
Im annoyed about B&Q because they should know if council tenants are accepted or not before putting you through, sending guys out to our home selling and designing, when there was no way we were gonna be accepted. They have told me some staff are aware of this policy, and others arent. Surely they shouldall be up to date? saves their time and ours, pretty unproffesional.
Like Ive previously said though, its fine, we are gonna go a different route, I just needed a rant! lol
Well if it means you're putting less money into the property you don't own, I'd say B&Q have done you a big favour.
Very much doubt you would get a credit card with such a high credit limit this day and age-

Look elsewhere as those prices are sky high though

With regards to the finance company, its their choice who they lend to and there isnt anything you can do about it unfortunately
this post dosen't ring true, why would anyone want to pay rent for the rest of there lives if you could own it and live with no mortgage in the end... the problem with council tennants is they think they own there houses they don't and can be moved
Why would you want to improve a house that you don't own? That's like renting a car from hertz and then spending your own money getting it resprayed.

Have you thought about asking the council to update it if its looking run down? You won't get much/if any choice in what you get but it will be a free kitchen that you can't afford anyway.
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