Is it really possible to get advertised loan rates without insurance?

Big_Ade_2

Hello all,

Need about £7500 over 2 years.
I have applied for about 4 loans now around low 6%ish rates, rejecting insurance/protection and they have offered between 7.9 and 9.6% and will not give me a reason for not offering the advertised rate

I have never had a loan before (have a mortgage for 7 years now) earn a pretty good salary and pay my Credit cards off monthly.

I know that is a good credit rating but maybe not a good deal for the loan companies.

So am I not getting the advertised rate because I may have a bad credit rating/my address has a bad rating or is it just the loan comanies/banks looking after buisness?

Thanks in advance
Adrian

jonesMUFCforever

Which company have you seen advertised as lower than 7.9% and have you applied to that company?

You could send them a letter requesting the reason as to why you were declined the advertised rate but expect the answer (if you get one) to be very vague and non commital.

At the moment a lot of loan companies are putting up their loan rates so if I was offered a loan at 7.9% personally I would accept, especially if you have done 4 applications in a short space of time which may effect your credit score.

Phantom_Flan_Flinger

It is possible to get the advertised rates without insurance as I have in the past. Northern Rock in my case.

As to why you haven't been offered the best rates, it's hard to say.

As above, loan rates seem to be increasing at the moment. My loan with NR was taken up at 5.7% last October. They're now offering 6.4%.

Big_Ade_2

Thanks for the comments.

Northern Rock advertised at 6.4% and offered 7.9%.

Applied to GE money last night and recieved an advertised offer but will not believe it until I get the paper work. Downside with them is an early repayment penalty of 2 month interest (Yes I want everything!!:rolleyes: )

Are you saying making applications affects your credit score?
How's that?
Surely I'm just shopping around, especially as the rates offered differ so much from advertised.

Like I said I've never had a loan before even though I've been working for 20 years so I am finding this less straightforward than expected

Carrera74

I've just got a loan with Sainsburys for their advertised 6.5% sale rate without their insurance

jonesMUFCforever

Too many credit applications make you look desperate and lenders may well shy away from you or offer higher rates as your are perceived by them as being higher risk.

Big_Ade_2

Got two advertised offers now.

6.4% from GE Money and Halifax.

Cheers for the advice

chani1

wether you take protection on a loan or not has no effect on the out come the loan. FYI also in regards to the shopping around its not just that it makes you look desperate for the cash but new lenders have no idea if you have taken out any other of the previous offers in the last 28 days so you could be getting in a hell of alot of debt how are lenders to know?? This is why it effects your credit score if you do more than 1 application in the space of 1/2 months. Also most companies must get around an average of 66% of their customers getting the "typical apr" or it would be false advertising. Just incase anyone was wondering.

Laurenbelle

Infact with the bank i work for - all the advertised rates are without the insurance. Where it will give you an example £x000, over x years is a monthly repayment of £x. That is always calculated without the insurance on the flyers.

MarkyMarkD

That wasn't the OP's point - they suspected that banks simply refused to offer the advertised rates other than to borrowers who take insurance.

You are quite right that all lenders advertise the monthly payments without insurance, as that makes the loans look cheaper! And of course, for those who don't want/need insurance, those are the right monthly payments. (Some do quote both in their literature).