Sainsbury's Loan 3.2% RIPOFF

[Deleted User]

industryinsider2 wrote: »

Do the FCA actually ever check these numbers?

Yes.

industryinsider2 wrote: »

I'm sceptical as to how often these headline rates are being given to consumers.

51 times out of a hundred.

industryinsider2 wrote: »

I challenge Sainsbury's to get their Typical APR calculation independently verified.

Challenge completed.

dumpyboy

Deleted_User wrote: »

Yes.



51 times out of a hundred.




Challenge completed.

You have un disputed document proof that. 51 in a 100 got the headline rate

industryinsider2

@zx81 - If that's just the stock MSE Forum arseh0le response then that's cool, I get it. If not, back up your claims with some sort of empirical justification and I'll bow down to your prowess.

[Deleted User]

Yes. I've seen it documented by channel and rate. Ie you can't offer the headline rate only through your website and top up with higher rates through other channels (eg DM).

When a channel falls below 51%, corrective action needs to be taken to the acceptance criteria to maintain the %.

dumpyboy

Deleted_User wrote: »

Yes. I've seen it documented by channel and rate. Ie you can't offer the headline rate only through your website and top up with higher rates through other channels (eg DM).

When a channel falls below 51%, corrective action needs to be taken to the acceptance criteria to maintain the %.

Why will no company publish such data

[Deleted User]

They won't publish channel information as it's commercially confidential. Just publishing the %s wouldn't prove anything with the actual numbers, and lenders don't want to give away which channels are most prominent in their acquisition mix.

dumpyboy

Just a normal whitewash, we have to believe the banks as we all now no bank in history have ever lied

[Deleted User]

That's fine. We'll all got the right to believe what suits us best.

Just make sure you're making the right decisions for you on the information you have available.

AuntyJean

Thank you Gaz83 and others for your responses whether, constructive, negative or otherwise. I have a £110,000 mortgage on my main home which is interest only and which I hope to clear before I retire in approximately 6 years time hence the build up of savings. The other mortgage was an investment to hopefully help pay off that mortgage. I was simply trying to be savvy and save a few hundred pounds by getting a better rate on the second mortgage. When I contacted my bank to enquire about moving the loan. However, I found there was a penalty clause of one months interest which equated to about the amount I would have saved so did not bother. I have instead increased the monthly payments to that which I can afford to get the loan paid off earlier.


I am still of the opinion though that Sainsbury's were wrong in that they did not take into consideration the person applying was an existing customer and they could check their records accordingly. Also the fact that 51% of customers get the loan at the advertised rate is only 1% over half! If it is advertised at a certain rate I personally would prefer to see acceptance or denial at that rate rather than my application being accepted but not at the rate advertised which is not clear until you receive the papers.



I

PeacefulWaters

AuntyJean wrote: »

Thank you Gaz83 and others for your responses whether, constructive, negative or otherwise. I have a £110,000 mortgage on my main home which is interest only and which I hope to clear before I retire in approximately 6 years time hence the build up of savings. The other mortgage was an investment to hopefully help pay off that mortgage. I was simply trying to be savvy and save a few hundred pounds by getting a better rate on the second mortgage. When I contacted my bank to enquire about moving the loan. However, I found there was a penalty clause of one months interest which equated to about the amount I would have saved so did not bother. I have instead increased the monthly payments to that which I can afford to get the loan paid off earlier.


I am still of the opinion though that Sainsbury's were wrong in that they did not take into consideration the person applying was an existing customer and they could check their records accordingly. Also the fact that 51% of customers get the loan at the advertised rate is only 1% over half! If it is advertised at a certain rate I personally would prefer to see acceptance or denial at that rate rather than my application being accepted but not at the rate advertised which is not clear until you receive the papers.

The rule used to be 67% but EU regulation changed it to 51%.

I agree that a warning along the lines of "some applicants may be offered a loan at a rate higher than that advertised" combined with absolute clarity on date once approved would be better for everybody.