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I approach my bank for a small business loan (£1500) and am turned down point blank. A friend who despite my best efforts still thinks property is only going to increase in value has just closed another BTL mortgage to add a 4th property to a portfolio he can ill afford. They refuse me a sum I can easily afford, but grant him the means to send himself into financial oblivion. I guess next time I approach a bank I should ask for a 4 million quid BTL mortgage on some s*****y flat in London, I bet they'll go for that.

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Not surprised one little bit.

The BOE are clueless, they haven't got a shred of common sense and they still don't understand how they have totally titled the economy, encouraged outright speculation and normal funding has kicked the bucket - far too much money to be made by shovelling £10Bn's out the back door via securitisation through housing and more recently private equity. The economy is being cored out, many companies now as well as householders are being piled up with levels of debt that they will never recover from, meanwhile the real economy gets kyboshed too.

By the time they realise their mistakes it will be far too late, I reckon it already is, the crop of little companies that need to become big companies and big employers in the furture simply won't exist. This is a long slippery slope and there is enough grease on it now to prevevnt a real sustainable recovery for a very long time.

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banks are fcking spastics man. I was late few times for barclaycrap payments and they shared my data with experian (charge you to view your credit score) yet I put over 7k into my person account in March yet i cant get a bigger overdraft than £350. Man i hate this country with a passion lol.

Don't trust

a) banks

B) men with beards

c) skinny chefs

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Given that banks work on risk, and use computers to analyse the data then it should come as no suprise that a Small Business Loan unsecured is turned down, and a BTL against an existing portfolio is approved.

With regard to George's problem with Barclaycard.

It is well documented that if you pay your credit card late, they will charge you. I had the same thing with the Halifax, whereby they took five clear working days to clear the monies sent from my bank, in addition they change the payment dates so its hard to keep track. My solution was to setup a DD to pay an amount each month long before the anticipated payment date. The beauty of this was without even trying I cleared my balance in a couple of months and now dont use the card at all.

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I approach my bank for a small business loan (£1500) and am turned down point blank. A friend who despite my best efforts still thinks property is only going to increase in value has just closed another BTL mortgage to add a 4th property to a portfolio he can ill afford. They refuse me a sum I can easily afford, but grant him the means to send himself into financial oblivion. I guess next time I approach a bank I should ask for a 4 million quid BTL mortgage on some s*****y flat in London, I bet they'll go for that.

My wife and I have been setting up 6 internet saving accounts which took nearly 2 months to get up and running. We had issues with them not accepting the certification we had obtained to verify our name and address and lost several application/documents in the post. It was an incredible frustrating process and really made me feel the same regarding this country. Before we decided to opt out of moving up the ladder we were going to take out a huge loan on the new house and do a BTL on our current home, this was arranged with our mortgage company in 30 mins!

It really does sum up the mess we are in at the moment, although in the past few months I feel this is really turning fast.

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banks are fcking spastics man. I was late few times for barclaycrap payments and they shared my data with experian (charge you to view your credit score) yet I put over 7k into my person account in March yet i cant get a bigger overdraft than £350. Man i hate this country with a passion lol.

Don't trust

a) banks

B) men with beards

c) skinny chefs

Late paying a few times?

They don't care if you've put money into your account as you've shown yourself to be incapable of properly managing your affairs.

Isn't it £2 to check your experian rating?

and if you've put £7k into your account you don't need an overdraft.

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I approach my bank for a small business loan (£1500) and am turned down point blank. A friend who despite my best efforts still thinks property is only going to increase in value has just closed another BTL mortgage to add a 4th property to a portfolio he can ill afford. They refuse me a sum I can easily afford, but grant him the means to send himself into financial oblivion. I guess next time I approach a bank I should ask for a 4 million quid BTL mortgage on some s*****y flat in London, I bet they'll go for that.

£1500 isn't worth them bothering with, it would cost them money to do business with you.

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£1500 isn't worth them bothering with, it would cost them money to do business with you.

I had the same issue. Wanted to borrow £60k business loan and got turned down but we found other ways of doing what we do without the money (borrowed some money but not as much as we wanted from friends and family - paid them all back now :) ). Sure, we might have done better with a healthy dose of capital injection. It's tainted my view of banks though.

At the end of the day, the interest they would make of my loan is nothing against the money they would make on the back of a btl portfoilo and it's secured against the property.

Edited by adamUK
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I approach my bank for a small business loan (£1500) and am turned down point blank. A friend who despite my best efforts still thinks property is only going to increase in value has just closed another BTL mortgage to add a 4th property to a portfolio he can ill afford. They refuse me a sum I can easily afford, but grant him the means to send himself into financial oblivion. I guess next time I approach a bank I should ask for a 4 million quid BTL mortgage on some s*****y flat in London, I bet they'll go for that.

Beg, borrow or steal as much as you can then bale out: http://news.bbc.co.uk/1/hi/programmes/panorama/5169394.stm

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Life should be made easier for those who wish to make this country great again, by giving support and help to those that have the belief, energy and enthusiasm to want to work for themselves and to create employment for others.

Make it easier and more profitable to invest into business, and not so easy to invest into BTLs. ;)

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I approach my bank for a small business loan (£1500) and am turned down point blank. A friend who despite my best efforts still thinks property is only going to increase in value has just closed another BTL mortgage to add a 4th property to a portfolio he can ill afford. They refuse me a sum I can easily afford, but grant him the means to send himself into financial oblivion. I guess next time I approach a bank I should ask for a 4 million quid BTL mortgage on some s*****y flat in London, I bet they'll go for that.

Good post. It sums up my reason for being on this website. Other countries invest in industry and enterprise. Despite being the land of loose money, the UK has almost fallen off the chart in terms of investment in R&D.

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I approach my bank for a small business loan (£1500) and am turned down point blank. A friend who despite my best efforts still thinks property is only going to increase in value has just closed another BTL mortgage to add a 4th property to a portfolio he can ill afford. They refuse me a sum I can easily afford, but grant him the means to send himself into financial oblivion. I guess next time I approach a bank I should ask for a 4 million quid BTL mortgage on some s*****y flat in London, I bet they'll go for that.

I was speaking with a woman yesterday who is emigrating to the Dominican Republic. She sought financial advice from her bank, suggesting selling her house in the UK and buying a place in the DR with the proceeds. They advised her instead to MEW the equity out of her UK home, let it out, and buy a place in the DR with the mew'ed equity.

That was the bank's own financial adviser's suggestion!! The advice was given on Wednesday of this week - do they live in a vacuum?!

TD

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Guest wrongmove
I approach my bank for a small business loan (£1500) and am turned down point blank. A friend who despite my best efforts still thinks property is only going to increase in value has just closed another BTL mortgage to add a 4th property to a portfolio he can ill afford. They refuse me a sum I can easily afford, but grant him the means to send himself into financial oblivion. I guess next time I approach a bank I should ask for a 4 million quid BTL mortgage on some s*****y flat in London, I bet they'll go for that.

This is very disappointing from the banks. You must have pretty poor credit, which is quite usual as you have only recently graduated and won't have had chance to build up a good record. Make sure you are not doing anything to unneccesarily degrade your rating, i.e. always make sure you are on the electoral register etc.

A couple of articles here:

How to improve your credit rating (The Guardian)

Improve your credit rating (thisismoney)

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This is very disappointing from the banks. You must have pretty poor credit, which is quite usual as you have only recently graduated and won't have had chance to build up a good record. Make sure you are not doing anything to unneccesarily degrade your rating, i.e. always make sure you are on the electoral register etc.

A couple of articles here:

How to improve your credit rating (The Guardian)

Improve your credit rating (thisismoney)

Does the address you live at affect your credit rating? e.g. previous people living there have defaults, or CCJs.

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Guest wrongmove
Does the address you live at affect your credit rating? e.g. previous people living there have defaults, or CCJs.

It shouldn't do. You can check your records to see why you have a bad rating, and try to address any factual errors.

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This is very disappointing from the banks. You must have pretty poor credit, which is quite usual as you have only recently graduated and won't have had chance to build up a good record. Make sure you are not doing anything to unneccesarily degrade your rating, i.e. always make sure you are on the electoral register etc.

A couple of articles here:

How to improve your credit rating (The Guardian)

Improve your credit rating (thisismoney)

I think you are ignoring the point here Swiss Army Penknife. A few years ago, lenders relied on the judgement of bank managers to assess risk. They have replaced this with a formulaic approach. If you go them with a request for a property loan, they give you a response within 30 seconds (and the answer is invariably yes). If you ask for a loan for investment purposes they have neither the skill nor the inclination to evaluate your request (unless it is £5 million+).

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This is very disappointing from the banks. You must have pretty poor credit, which is quite usual as you have only recently graduated and won't have had chance to build up a good record. Make sure you are not doing anything to unneccesarily degrade your rating, i.e. always make sure you are on the electoral register etc.

A couple of articles here:

How to improve your credit rating (The Guardian)

Improve your credit rating (thisismoney)

I got my identity stolen at university and someone ran up about 2k on a capital one card. It was all sorted out as far as the law is concerned, but still some dodgy debt collection outfit is crapping on my credit file. It seems something like that is almost impossble to fix. I have no CCJ's as a result of this and was told by capital one that they accept that my ID was stolen, and yet still about 3 of these cowboy collection agencies send occasional letters and seem to be registering issues on my credit file.

Edited by BoomBoom
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I think you are ignoring the point here Swiss Army Penknife. A few years ago, lenders relied on the judgement of bank managers to assess risk. They have replaced this with a formulaic approach. If you go them with a request for a property loan, they give you a response within 30 seconds (and the answer is invariably yes). If you ask for a loan for investment purposes they have neither the skill nor the inclination to evaluate your request (unless it is £5 million+).

I am simply trying to give practical advice.

BoomBoom is only looking for £1500. It is possible to borrow £25k with no security or business plan. This is not just about the banks atitude to business loans, it is about BoomBoom's credit rating. He could have just asked for a car loan for this amount.

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I was speaking with a woman yesterday who is emigrating to the Dominican Republic. She sought financial advice from her bank, suggesting selling her house in the UK and buying a place in the DR with the proceeds. They advised her instead to MEW the equity out of her UK home, let it out, and buy a place in the DR with the mew'ed equity.

That was the bank's own financial adviser's suggestion!! The advice was given on Wednesday of this week - do they live in a vacuum?!

TD

My advice would be to MEW the house in the UK, withdraw the lot as cash, then move to the DR under an assumed name :D

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I got my identity stolen at university and someone ran up about 2k on a capital one card. It was all sorted out as far as the law is concerned, but still some dodgy debt collection outfit is crapping on my credit file. It seems something like that is almost impossble to fix. I have no CCJ's as a result of this and was told by capital one that they accept that my ID was stolen, and yet still about 3 of these cowboy collection agencies send occasional letters and seem to be registering issues on my credit file.

That really is a bummer - very unfair. You may need legal advice. My guess is you have already tried any obvious routes,

Quck edit - website I posted was [email protected] :ph34r:

Edited by wrongmove
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I am simply trying to give practical advice.

BoomBoom is only looking for £1500. It is possible to borrow £25k with no security or business plan. This is not just about the banks atitude to business loans, it is about BoomBoom's credit rating. He could have just asked for a car loan for this amount.

Perhaps so but borrowing in the UK does seem very lopsided. Several years ago I applied for a loan under the loan guarantee scheme. I was put through the mill in terms of due diligence but I successfully got the all the relevant boxes ticked. In the end the bank said they liked the business would loan the money subject to three conditions:

(1) I would personally guarantee the sum not covered by the government loan guarantee scheme.

(2) The business had to achieve a minimum level of sales before they would release the money.

(3) We would pay a premium in terms of interest for the risk 'they' were carrying.

It was a pointless offer because they had reduced their terms to a substantially risk free proposal and they knew we couldn't comply with item 2 (it was the reason for raising the money). In retrospect I came to the conclusion that they simply did not want to be involved. They felt under obligation to make a token offer however since it was a government backed scheme and we had successfully gone through the due diligence process.

Edited by dog
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