Loan Advice

taney

Hi,

I need an advice please!

I need a loan of 5000 at least.I own a house on mortgage.However I donot hold permanent residency but have recently migrated (3 years residency status) because of which I am getting loan at an interest rate of 11%.However I can afford to pay an interest rate of around 8%.I have a fair credit history but had 2 credit checks recently.I applied for First plus and Promise but haven't got the loan approved.

Please can anyone suggest me where can I get a loan at interest rate of around 8%.I"ll be extremely greatful.

Thanx in advance!

grumbler

taney wrote:

...However I donot hold permanent residency but have recently migrated (3 years residency status) because of which I am getting loan at an interest rate of 11%...

I cannot give you an advice, but I think you should find out the real reason of being offered high interest rate on loans. I don't think that your residency status is the main problem. Majority of banks demand being residend for 3 years for some their products. See, for example, these threads:
Using an MBNA card as a mule for SBT?
current account no conditions

See also Credit Rating article.

taney

Thanx for the suggestion. However,when I applied to first plus they said that since you dont have permanent residency so if you run away with themoney we won't be able to trace you so they simply refused to go ahead.However Promise finance they offered at interest rate of 11%.

grumbler

And how did they know that you are not a permanent resident? You told them? Then how do you know? Do they have any definition of 'permanent resitdency'?
BTW First Plus is the last place I'd try to borrow from, not the first. Ask the bank you have your current account or your mortgage with.

taney

well it was my mistake that i told them that i have been resident here for last 3 years and working on work permit (shouldn't have told the truth)& then they enquired about permanent residency.
I have account in HSBC & when I check through their online calculator it shows an interest rate of more than 11%.Will it make a difference if I meet them in person or make a phone call?

grumbler

taney wrote:

...when I check through their online calculator it shows an interest rate of more than 11%.Will it make a difference if I meet them in person or make a phone call?

If you mean this , I just tried it and was not able to get their advertised 'typical' 6.9% APR even for the largest amount £25K. The lowest APR that calculator gives is 10.9%.
I'd order £2 credit files from Experian and Equifax and took them to appointments to HSBC branch and other banks (along with other importand documents: payment slips, mortgage statement, ...) - to avoid damaging credit history by further credit searches. I am not an expert, but I think you can ask them to make a provisional decision without a full credit search.