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How to choose loan provider

Hi

We have seen lots of companies offering similar rates of interest for a loan of around 9K, however we realise they only have to offer these rates to 51% of customers.

Do most companies use a similar method for deciding on the rate of interest that they will decide to offer us or is it something that could vary a lot?

Is there any way to work of what rate is likely to be offered without actually putting in an application and it then showing on our credit record?

Cheers
Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19

FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/2103

Comments

  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yes each lender will use a same method but they will each have their own scoring system and I also believe in turn means each lender has they're own ideal borrower. You can try the Nationwide soft loan search and maybe try your own bank to get an idea of what to expect.
  • Foxn86
    Foxn86 Posts: 92 Forumite
    You could do a soft search on Nationwide, this will not been seen on your credit file, and will give you a good idea of interest rate they will offer. And only if you go ahead does it show on your credit file.
    Also depends what type of credit history you have, and your salary etc. Do you have good history and salary etc
  • Apples2
    Apples2 Posts: 6,442 Forumite
    If there was an answer to that question there would be no competition and no market.

    Everyone would go to the same place and/or manipulate their details to guarantee the best rate.
  • 27col
    27col Posts: 6,554 Forumite
    Quote "How to choose loan provider".
    I would have thought that it was not so much a case of you choosing a lender, but more a case of a lender choosing to lend to you.
    I can afford anything that I want.
    Just so long as I don't want much.
  • is it possible on NW soft search for a loan?
    Total Debt in June 2013: Barclaycard 0% until Nov 2014: £1550

    Tesco CC: £1200 0% Until March 2014

    HSBC CC: £384 25%APR - TARGET to make GREEN ASAP
  • DCFC79
    DCFC79 Posts: 40,610 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    is it possible on NW soft search for a loan?

    Yes Nationwide do a sotf search for loans.
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