Sainsburys Personal Loan - Approved In Principle

TheAnalyst

Just wondering if anyone had any experience of Sainsbury's post application checking?

I've just applied for a personal loan of £15,000 (in my own name, not joint) purely to consolidate 3 credit cards I have.

It's been a tough couple of years financially, I earn circa £35k but my partner has just finished her nursing degree and we had a little boy 18 months ago. I've been supporting my partner whilst paying for all household bills/expenses (I own my own flat) and we have lived a pretty good lifestyle to be honest but the bulk of it and of course the expense of having a child had been spent on credit cards.

I'm now at a stage where the card's are coming to the end of their interest free periods and I need to consolidate the total into one manageable payment, now my partner is employed too I would like to clear this and give us some extra to start to save some money towards a deposit for a house.

Anyway, applied for a Sainsburys personal loan when my own bank knocked me back (for some reason they, HSBC, don't like me, never have, never had credit problems with anyone else but they refused a loan last year and another again yesterday).

Anyway, £15000 over 5 years @ 5.1% which I thought was very good. Accepted in principle apparently with the following message:

Thank you for applying for a Sainsbury's Bank Loan. We're pleased to tell you that we have approved your application in principle. (Please note: this is subject to additional checks and we still may withdraw it. If we decide to do this, we'll contact you to let you know.)

What happens next?

We'll now send your Credit Agreement to you by 1st class post. Please read it carefully and make sure you are happy with the rate we have offered you and the conditions of your loan before you sign and return it to us. Please be aware that the rate we offer you will depend on your personal circumstances, our credit assessment procedures and other related factors and may not be the advertised representative rate. Please make sure that if it's a joint application that you both sign the form. The signature request is for the mail applicant and the second applicant should sign it under 'customer'.

Once we have receive your signed agreement, we'll transfer your money directly into your bank account.

Anyone got any experience of Sainsburys? Should I expect the dreaded letter saying "sorry but no thanks" or am I pretty much over that hurdle?

Thanks in advance.

BugsyBrowne

Looks good this end...

Don't be surprised if the 5.1% APR changing though.

TheAnalyst

Declined by underwriters.

Back to the drawing board

[Deleted User]

You're going to stuggle with wanting that amount of credit on your income.

You would be better off clearing as much as you can and then looking for a 0% BT card to transfer some of it. I doubt you'll get anything like another 15k.

MEM62

Generally speaking, if your own bank isn't interested in helping then you options are limited. I think your problem is that your salary is not high enough to support the amount of borrowing that you are seeking.

iolanthe07

The underwriters would have added your credit card debt to the £15K, thus making the total amount you would owe unsustainable (in their view). Even though you intended to use the loan to pay off your credit cards, the underwriters have no cast iron guarantee that you will - lots of people don't, hence the general lack for enthusiasm for consolidation loans on this board. You will find posters on the debtfreewanabe board who have consolidated over and over again until they are deep in the pooh.

If it is any consolation you propbably wouldn't have been offered 5.9% APR anyway. They only have to offer the headline rate to 51% of successful applicans.

BugsyBrowne

Forget about consolidation loans and bung as much coin at your current debts as possible and you'd be very surprised how quick they'll reduce.

marathonic

Agree with the others. I was surprised to read the original post about acceptance for a £15k loan on a £35k income for consolidation purposes.

£15k is about the maximum someone on that income would expect to get if they had a single other card with a limit below £2,500.

Brock_and_Roll

As I think the OP acknowledges in his first post, there is an underlying overspending cause to this that will not be resolved by obtaining a loan.

Interesting to note that in 2009 the OP won £11k on a lottery and managed to clear all debts.....yet in 4 years they have built up again.
https://forums.moneysavingexpert.com/discussion/2130799=

1DayAAT

Hello OP,

Sorry to hear you were declined for this loan. My recent experience of Sainsburys loan just for info:
I received the same email message about being approved in principal with Sainsburys when I applied for a £5000 loan over 60 months a couple of weeks ago to help me consolidate some other debt. Within 2 days I had received the credit agreement, sent it back signed and the money was in my account within a couple more days. APR was slightly higher than quoted but not enough to put me off.
My credit score is in a good condition but I do also have a Tesco loan running for £7000 (£4860 remaining). My salary is a lot less than yours but my outgoings are few due to living with my parents. Never missed any payments on loans or credit cards (I have 2).
I'm not sure how they work these things out. :idea:
I'm hoping to clear both of my loans by December 2015!:T I only took it over 60 months to give me a cushion of smaller repayments.

Dontstop_2

Sorry to revive an old thread but I had email and returned credit agreement Friday and haven't heard nothing since from sainsburys will they email me to confirm all has been agreed or will the money appear in my bank account