How far in advance for a loan?

marco_79

Hi,

Need to get a loan to pay off car PCP on 14/5/17. Strong credit rating so getting the loan won't be a problem.

Intending to use Nationwides price promise of 0.5% off best rate which at the minute would be 2.9%-(0.5%)=2.4% for £9000 over 48months.

Question is - I don't need this money till 14th May. I want to get this arranged now. How far in advance can you apply for a personal loan?

Thanks

Marco

DCFC79

marco_79 wrote: »

Hi,

Need to get a loan to pay off car PCP on 14/5/17. Strong credit rating so getting the loan won't be a problem.

Intending to use Nationwides price promise of 0.5% off best rate which at the minute would be 2.9%-(0.5%)=2.4% for £9000 over 48months.

Question is - I don't need this money till 14th May. I want to get this arranged now. How far in advance can you apply for a personal loan?

Thanks

Marco

A strong credit rating has no bearing as no 1 can see it, what matters is your history. Who gives you the credit rating, maybe ask them as they seem to know you well.

Its not guaranteed you would get the 2.9%.

You can apply when you want, why would you apply now and pay the monthly payments from now, why not wait until may.

marco_79

Ok I have a strong credit history and rating. I have been approved for the 2.9%, so it is guaranteed.

I don't want the money now. I want the money in May but I want it at that rate hence the reason I'm asking how far you can do it in advance.

Gaz83

You would have to ask the lender, but it would be a fairly unusual request I would think.

You're essentially asking them to 'hold' the money for you until May. Can't see a lender agreeing to that. A million and one things could happen to your finances between now and then.

Herzlos

Yeah, I'd be suspicious as to why you want a rate held for 4 months. Are you just worried the offer won't be there in May?

DCFC79

marco_79 wrote: »

Ok I have a strong credit history and rating. I have been approved for the 2.9%, so it is guaranteed.

I don't want the money now. I want the money in May but I want it at that rate hence the reason I'm asking how far you can do it in advance.

Oh so you want them to hold todays rate but lend you the money in may when you want it, lol not going to happen. Banks dont work like that.

mickburkejnr

Hand the car back, walk away from it. Buy a cheap second hand Japanese car, with the money you'd spend on the loan you can put aside for 12 months. At that point you can buy a better car, while still saving the money you'd have spent on the loan.

Keep doing that, and by the time you'd have paid back the loan you'd have enough money and assets to buy a newer car that you'd own outright.

This advice, trust me, comes from learning the hard way about PCP's etc.

Pixie5740

If that rate of 2.9% APR is because you have a Nectar card then Nationwide won't try to beat it. 2.9% APR is still a great rate though so if you have already applied and been offered that rate I'd take it now. You don't know if, after turning down the loan now, you'll be accepted at that rate should you apply again in May. A bird in the hand and all that.

marco_79

DCFC79 wrote: »

Oh so you want them to hold todays rate but lend you the money in may when you want it, lol not going to happen. Banks dont work like that.

You can nail a mortgage rate for up to 6 months in advance so i don't think its a silly question!

marco_79

Pixie5740 wrote: »

If that rate of 2.9% APR is because you have a Nectar card then Nationwide won't try to beat it. 2.9% APR is still a great rate though so if you have already applied and been offered that rate I'd take it now. You don't know if, after turning down the loan now, you'll be accepted at that rate should you apply again in May. A bird in the hand and all that.

2.9% was with TSB to aviod the Nectar card.

marco_79

mickburkejnr wrote: »

Hand the car back, walk away from it. Buy a cheap second hand Japanese car, with the money you'd spend on the loan you can put aside for 12 months. At that point you can buy a better car, while still saving the money you'd have spent on the loan.

Keep doing that, and by the time you'd have paid back the loan you'd have enough money and assets to buy a newer car that you'd own outright.

This advice, trust me, comes from learning the hard way about PCP's etc.

Thanks but we have been doing PCPs for years, it works for us. We normally just hand the car back and get a new one. This time though the car we have has only done 25k miles. The payment is £2k under what it's worth and we need a 7 seater. To get the same spec car new we would be adding almost £100 to our monthly payment. Doing it this way reduces our monthly payment for a car that has plenty life left in it and we can even add an extended warranty. Even if we keep the car the full 4 years it will still have about £4k equity at the end, more likely we will only keep it for 2 years though.