£24,500 Loan - Self Employed. Best Buy Northern Rock (6.5%) ?

chrisjoanne

Hi

Firstly can I just say that I've used this site over the last few months saving a huge amount of money and can't thank Martin and all the posters enough. A truly fantastic website! Cheers.


Now, I'm looking to borrow £24,500 over a 6 year term (I can't afford a 5 year term) for a new Taxi. I'm self employed (for 9 years - with books) and a joint home owner.

I've looked at the comparison, Moneysupermarket website informing them of my credit details via Equifax. This has come back with a rating of "Excellent".

The best deals I can see are Brittania at 6.3% M&S and Northern Rock at 6.5%.

I've also taken a look at another comparison website and they have MasterLoan as their cheapest lender at 5.9%. However, I really don't believe many people will get this rate (do they ever!).

My question is this.....Do you think if I arrange my loan via The Northern Rock that I will receive the 6.5% on offer? I understand it is very important to only apply to one or two lenders for loan offers and I want to get this right on my first attempt.

I made the error around 4 years ago by applying for 4 loans at the same time and the lenders knew what I was doing (trying to get the best rate). This backfired and I eventually ended up with a high rate because of this.


I have taken a look at how many people get a low APR with The Northern Rock and it is quite high. Also, the percentage of people who are happy with the service on offer is also high.

I would prefer to get a slightly higher rate but be offered the rate immediately if possible.

I have also signed up to Experian for a free credit report. I have yet to receive confirmation details and have not been able to access my account and do not know what rating I have with this company.

Thanks in advance.
Chris

Alan_M_2

Considering this is a business purchase would it not be more efficient to lease it?

Taking all tax variables into consideration surely it's worth looking at?

Rafter

Chris,

That is a big loan for a self-employed persion, so you may fall foul of some of the lenders restrictions. I suggest you say it is for buying a car rather than a taxi too.

Trick to get the lowest APR is to accept the PPI when you call up. Then once you have secured the rate and got your paperwork, call up, tell them you no longer want the insurance and could they re-issue the paperwork without it.

The insurance is for your protection and not theirs and they cannot make it a condition of the loan or the rate you get, so they must do as you ask.

Good luck.

R.