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    I had need to take out a loan in the past couple of days and have over 20 years of excellent credit worthiness - I mean excellent with monthly reports to keep an eye out for identity fraud.

    So, I applied to Barclays for a loan of 25K at a published rate of 6.3% and a repayment term of 36 months, without payment protection. Barlcays declined my application. :?

    So, I applied to the CO-OP for the same loan amount, same rate and same repayment period - again, declined.

    I then get a call out of the blue from Ocean Finance telling me that they could help me if I took the repayment period over 6 years, higher rate and secured the loan on my property of all things! That means that I end up paying far more than I want to for the initial loan amount.

    After chatting to the girl for about 10 minutes she confesed that I would never get a large loan at a low rate over a short period because the lenders don't make enough on top of the principal loan amount and always pass this type of borrowing over these types of companies.

    Now that strikes me as daylight robbery, nothing less.

    BTW, got the loan & rate I wanted from my bank Natwest. :thumbsup:

    1 Comment

    If you have a lot of current credit on top of the loan then some banks will steer away from the application regardless if you've paid A1 or not. They call it 'living beyond your means'. An example could be someone whose paid everything spot on but has max'd 5 credit cards to the value of £20k.

    However, you've not stated any of the above so it was just an example on how banks underwrite. There's more to it than just credit checking.

    Glad to see you're sorted anyway :thumbsup:
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