loan for home improvement

longwalks1

Am considering a ground floor extension and looking at cheap loans, looking to borrow between £20k and £25k. Ive seen good rates between 3.6-4% (as low as 3.3% actually), but was wondering am i more likely to get the money from my own bank, who I've been with for 24 years, and see how much i take home each month? My bank are offering loans at 4.9% up to £25k.

Am i more likely to be accepted by my bank, or should i try one of the cheaper lenders? I just dont want to be refused on my first try, then have screwed my chances by being turned down

Any advice greatly appreciated

DCFC79

Your own bank knows your finances better.
Be warned its not guaranteed you will get the headline rates even from your own bank, there is a soft search eligibility checker from nationwide you can use. There be an eligibility checker on me somewhere.

jonesMUFCforever

If you have a mortgage is there scope to get the loan as a second mortgage?
Rates below 3% there.
You don't have to have a second mortgage for the term of your mortgage you can borrow over say 5 years.

dealer_wins

Big projects like this nearly always have setbacks and budget overruns so add a possible 10-20% on top of the quoted costs.

foxy-stoat

britishboy wrote: »

Am i more likely to be accepted by my bank, or should i try one of the cheaper lenders? I just dont want to be refused on my first try, then have screwed my chances by being turned down

Try your own bank, but only credit checks/searches are recorded on credit files, a decline or accept information is not recorded.

longwalks1

Thanks all, I used the 'soft search' tool here on MSE and 2 or 3 came back with 90% likely for acceptance, so will look into the actual building and get some quotes
Thanks again

longwalks1

Hello all
Had a look on my banks website (Lloyds) and they offer an 'online only' special loan with a rate of 3.9%. Theres a quick, one page application type form on Lloyds website (once you're logged in) where you have to put in total monthly income, total monthly outgoing etc, would this be classed as a credit search? After the sections to fill in it says this:

What happens next

We’ll let you know whether we can offer you a loan on the next page.
In some cases we may need to speak to you before giving you a decision.
If we approve your loan, you need to review and agree to the key information and your loan agreement online. We’ll also send you a copy of these documents by email.
Before we can give you an offer we may need to carry out a credit check. If you need more information about credit checks please call us before you apply for the loan.
Your email address

We need an up-to-date email address to be able to send you important notifications about your account. By providing your email address, you agree to receive documents by email to the address you have given.

jonesMUFCforever

britishboy wrote: »

Hello all
Had a look on my banks website (Lloyds) and they offer an 'online only' special loan with a rate of 3.9%. Theres a quick, one page application type form on Lloyds website (once you're logged in) where you have to put in total monthly income, total monthly outgoing etc, would this be classed as a credit search? After the sections to fill in it says this:

What happens next

We’ll let you know whether we can offer you a loan on the next page.
In some cases we may need to speak to you before giving you a decision.
If we approve your loan, you need to review and agree to the key information and your loan agreement online. We’ll also send you a copy of these documents by email.
Before we can give you an offer we may need to carry out a credit check. If you need more information about credit checks please call us before you apply for the loan.
Your email address

We need an up-to-date email address to be able to send you important notifications about your account. By providing your email address, you agree to receive documents by email to the address you have given.

Yes they wil conduct a credit search for a personal loan.