MSE News: Loan rates hit two-and-a-half-year low

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"M&S Money today launched the market's first sub-7% loan since 2008 though many applicants won't qualify for it ..."

Read the full story:
Loan rates hit two-and-a-half-year low

plumber2009

Why dont the banks just offer a 3 tier system based on credit score. E.G

Excellent credit rating gives the advertised rate. In this case 6.9%
Good credit rating add 3%. In this case 9.9%
Poor credit rating add a further 5%. in this case 14.9%

This could apply to all loans above £5,000

This would be a fair price for risk scenario for both borrower and lender and payments would be afforable for borrowers.

Lenders could adverties the 3 tier system so that customers would know what rate they would get should they qualify for a loan.

Peelerfart

You know what plumber some people on here would get slightly aroused if they though for one moment they could get a loan at 14.9%.

I think you need to add another rating "abysmal credit rating add a further 15%", and they'd still form an orderly line.