Barclays pre-SELECTED process ?

AJ84

Hi all,

I usually always get my car's on HP and tend to pay them off earlier than the term - this time round, I am a year in and not entirely happy with it so I am looking at selling up, paying off the HP and starting again.

Rather than going via vwfinance on their 10.9% APR's and what not, I noticed Barclays are offering 25k on a pre-selected loan as opposed to pre-approved.

What exactly is the process on this?
I've hit the "apply" and checked pre-credit search, the rates offered and they're very good - less than half compared to vwfinance for the full amount.

I assume the next step after hitting continue is the credit search etc. If that was to go through fine, what happens? ie: does it sit there waiting for a yes/no answer from me? Or do I automatically get it? Or does it sit there with an expiry date?
If the latter and it expires, does a re-application for the loan mean another credit search?

Currently it all hangs on a few things - if I get the loan, I still need to ensure the current one is bought back and/or sold so the agreement is settled but to do that, I need to ensure a suitable car is available. it's no point going for the loan while I still have an outstanding balance with vwfinance paying effectively the same amount as the loan on a monthly basis.

More than happy waiting it out but I'm just thinking if I settle now, I save 3-4k interest knowing I am not happy with this one
So it's whether I do the first check on whether I would even get the loan knowing that I cannot accept it even if they do offer me it until this car is settled and a new one is available.



Thanks all

foxy-stoat

Pre-Selected just means you have been given some marketing BS - if you apply and don't get the same rate there is no need to post on here complaining about it as its based on your circumstances.


Good luck!

AJ84

Thanks for the reply - Maybe I came across the thread in the wrong way or there is some mis-communication.

I'm not really after a definition to what a pre-selected loan is - I saw enough threads on here to determine it is marketing but also saw many did get the amount at the rate they were "advertised".

My primary questions are
1. IF I got through, do I have to take it or leave it or can it be parked
2. IF it can be parked, how long before the offer expires or it has to go through another credit check?

If I don't get it, I don't get it in which case I won't bother looking for a replacement or if I do, it'll be based on the 10.9% vwfinance offer.

Gaz83

Only Barclays would be privy to that sort of information. I doubt it's the kind of thing they'd make public. Lenders tend to keep their lending criteria and circumstances to themselves.

AJ84

Thanks Gaz, I stumbled across a live chat option with them so ... I had a chat with them.

Just to answer my own questions that may/ may not help others...

In regards to the pre-selected...
"The APR you can see on your online banking is the APR you will get. A pre-selected offer is something that our underwriters put in place each month after reviewing your account, existing debts and credit file."

In regards to parking/ what happens next
Assuming it is not declined/refer, when the loan is agreed you have 30 days to sign for the funds.

After this it the process would have to start again as things change.

AJ84

Just a quick update, I went through the application and got the rate "advertised" quite easily.

Step 1- Go to the next stage from the pre-selected page
Step 2 - Decide how much the of the loan you want + the term and depending on that, the APR goes up/down
Step 3 - This is the stage I raised the thread - At this point it took less than 2 seconds to get to the final page which basically came back saying you will get the loan at the rate you saw in the previous screen and sure enough, all the electronic papers displayed the rate, amount, term, my details etc.

Soon as I electronically signed it, the funds were transferred straight into my account.

In terms of time limts, they allow 30 days before the loan expires. The first 7 days allows online/electronic signature (essentially an I agree tick box).
If you miss the 7 days, you can still have the loan for a further 23 days but you have to go into the bank and sign the papers physically.
Once you miss the 23 days, the loan application process would start over.

So thats it - a much lower rate than the dealership was giving and hopefully in the next 6 months I will pay it off as I generally do with cars.

Thanks again for your help - hopefully this outlines the pre-selected > pre-approved process

Shakin_Steve

So...the same three steps as pre-approved.