Last Updated: 22nd January, 2018

Reputation Risk Loans

Published by Otto Dargan on June 11, 2014

Did you know that banks will decline a loan application if they believe being associated with you may damage their reputation?

You would think they’d base their decisions on their credit policy alone but that is often not the case! Like most large organisations the banks have invested significantly in their brand and do not want to risk any PR disasters.

We believe people deserve a second chance. Find out which lenders can consider your application and how you can get your home loan or business loan approved.

High profile divorces

Banks don’t want to be seen as supporting someone who has done the wrong thing. If you have gone through a difficult divorce that was reported in the media then they may decline your loan due to the increased ‘reputational risk’.

Most people need finance to settle their divorce, in particular, to buy out their partner’s share of their family home.

You can still get approved by applying with a specialist lender. Your personal affairs shouldn’t be any of the bank’s business!

Call us on 1300 889 743 or fill in our free assessment form to find out how we can help.

Legal action

High profile court cases can do a lot of damage to someone’s reputation, even if you’ve done nothing wrong.

Banks will side with public opinion and may refuse to approve your loan if you are involved in a high profile court case. This is partly out of managing their reputational risk and partly because if the court action hasn’t been decided yet then the outcome may affect your ability to repay your loan.

Again, specialist mortgage lenders can usually help. In particular, they can help even if your credit file has a judgment or court writ on it.

Corporate collapses

When a large company goes into external administration it is almost guaranteed to get the media’s attention. If you were the chief executive officer or had another position high up in the company then the banks are unlikely to want to lend to you.

You need to get on with your life but banks will often focus on the risk of the potential fallout from a corporate collapse. If your assets are owned by your spouse then this shouldn’t be a concern but that’s generally not how they see it.

Specialist lenders can consider your situation as long as you have a proven income and an ample equity position.

Political affiliation

Being a member of a major political party should not be a cause for concern when applying for a home loan. However, if you’re working for a fringe political party you may find your application is declined.

Some banks may not be willing to associate their brand with your political views.

How to get approved

It all comes down to applying with the right lender, presenting a strong case and showing that the fundamentals of credit worthiness are present.

Call us on 1300 889 743 or fill in our free assessment form to find out if you are eligible for a home loan.