AIBU or are Nationwide? Why won't they lend DS 18 5k?

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DS is 18 and has been in his job for 3 months. He earns more than me £17k and his position is secure.

He lives at home with me and his only interest is sport. He wants to buy a very expensive piece of sports equipment and made a loan request to Nationwide.

He was declined as his credit check showed he didn't meet the criteria. He's 18 and has no credit history, which I presume is the problem. I'd like him to save for the equipment but he wants it now and I think fair enough, its his money. Loan sharks Money lending sites will lend him the money, but I've steered him away from these towards his bank, and now they've said 'no'. Are Nationwide BU? Who might lend to DS?

If he is living at home and earning a decent wage then he should save for what he wants not get into debt for a hobby.

That's a pretty hefty loan to take out having only earned about 4k in his whole working life. He hasn't yet built up enough (any) history to demonstrate he is a responsible borrower.

They won't lend DS £18k because it's more than his annual salary for a job that he has only been doing for 3 months. Lack of credit history also doesn't help, but they really aren't BU

What on earth is the expensive sporting kit?!

I wouldn't want my 18 y o DS to take out a loan TBH!

One of DS1's friends has taken out a £3.5k loan for a car. He took it out the day after his 18th birthday 3 months ago, he already regrets it.

If DS1 wants something, we encourage him to save for it.

So he wants a loan representing more than his annual income? They are NBU to refuse that. YABU to support him getting into debt.
And it's not his money, it's the banks.
If you feel he's a good credit risk, why don't you take a loan and he can pay you each month?

5k?!

Fuck me.

I don't know anything about banks but my instinct is they'd have to have a bloody good reason to lend him that much on his salary - it'd take him ages to pay back!

If it makes him feel better they won't even give DH a credit card and he's on 22k with a perfectly good credit history, and they'll only lent me 750 quid off minimum wage. I don't get how you'd get 18k off his earnings.

Lol 18 yo's aren't exactly a sound risk. Sounds like Nationwide have their heads screwed on correctly in this case

What piece of sporting equipment costst 18k?

I think you are being irresponsible encouraging to get into debt so early in his working life. 18.5k is a hell of a lot to spend on one item for a hobby, even for someone who has much more cash available, they wouldn't make a purchase like that without serious thought.

He needs a credit history. He could get a credit card (and use it wisely, paying it off every month) this will start off a credit history.

Times are hard. I was refused a £500 extension on my Nationwide Credit Card with no reason given. I was going to buy a new kitchen and wanted the protection they advertise to sell their own card! I only have 15% of my house value on mortgage (with them) and have reasonable savings. No doubt next week they will try and sell me some product or another, but obviously I am not in a position to afford it!

I have heard of others being turned down recently by them as well, not young people but middle income earners. They have always been a conservative lender and are now even more stringent in their approach.

Banks are more cautious these days. An unsecured loan of £5k for an 18 year old who has only been working for 3 months is high risk lending. That is why he has been declined.

What happened to good ole fashioned "saving up" ?

YANBU

And teaching your dc to want what they cannot have

if you said this was a car he needed to get to work, eg, then fair enough

an expensive bit of kit for a hobby?...it would be a poor bank manager that loaned an 18yo in his situation this kind of money

I bank with nationwide...and I agree with their decision

He wants £5k earns £17k pa and is 18. For those who can't read

Is there any scheme that would allow him to rent the equipment with an option to buy IYSWIM? Where he pays x amount a month and after eg 18 months can pay the outstanding amount and become full owner?

I think he is 18 and wants to borrow 5 thousand.

That's the way I read it anyway

And he needs to build up his credit rating. Show lenders that he pays money back!

Get him a contract phone in his name. Have him have some bills in his name that he pays on time every month.

don't just throw him in at the deep end with a five grand loan!

And I want it now now now is a very immature attitude and precisely the reason people drown in unmanageable debt.

There is a lot to be said for living within your means and SAVING for things!

He wants 5k, NOT 18k.

Tell him to save up. I would not take a loan like that on that wage, it would be madness to allow an 18 yr old to do it.

I think the DS is 18 and the loan would be 5K.

"he wants it now and I think fair enough, its his money" - well no it isn't his money. That's the problem! Its the bank's money and they don't want to take a risk on lending it to someone who has only been earning for such a short time.

I presume he is bringing home around £950 a month ?
Presumably you are not charging him hugely high rates for rent / housekeeping, so why not encourage him to be putting away a few hundred a month and save up for it ? Won't take that long, and will be a LOT cheaper for him in the long run than paying interest on a loan.... show him the difference in total cost.
It's the 'instant gratification / borrowing for things that are 'wants' rather than 'needs' that has got the major world economies into such trouble.

YABU - your son could quit his job or be made redundant and the bank would have no way of getting the money back. If the loan was for a car to get to work I would've been on his side, but why take on debt like that for sports equipment?

oops, I meant YABU in my post, hope it was clear