Applying for a loan..

TheDebtinator

I've recently moved house. The electoral role has updated but obviously I am waiting for this to hit my credit files. Once they are up to date with my new information, how long afterwards should I leave it before applying for a loan?

Do I stand more chance getting a loan from my bank or does it not matter? I have been with my bank for 18 years.

Thanks.

bengalknights

If you need one now you probably stand a good chance using old address or your own bank

TheDebtinator

I don't need one at the moment but I will do at some point as I need to replace my 16 year old car..

Candyapple

TheDebtinator wrote: »

Do I stand more chance getting a loan from my bank or does it not matter? I have been with my bank for 18 years.

Financial loyalty counts for nothing these days - it's all based on numbers entered into a computer and whether you match the lender's criteria.

There is no right or wrong length of time to wait before applying, obviously the longer you are on the ER the better and min 6 months is probably ideal, but if you need to apply then make sure you check your eligibility first:

https://www.moneysavingexpert.com/eligibility/loans-calculator/

TheDebtinator

I checked that yesterday. I apparently have a 95% chance with Santander (who are also my mortgage provider). £10k over 5 years at 3.1% representative (not guaranteed I know). Same with Ikano at 3.0% and 90% chance with Sainsbury's at 2.8%. I did a check yesterday at 6 years and Sainsbury's were the only ones to say I had a 90% chance at 4.8%.

I can borrow upto £11k at 0% for 2 years with a 4.4% transfer fee from my credit card as well.

TrustyOven

TheDebtinator wrote: »

I don't need one at the moment but I will do at some point as I need to replace my 16 year old car..

What's wrong with it?
You could always DIY fix it.

TheDebtinator

TrustyOven wrote: »

What's wrong with it?
You could always DIY fix it.

It's beyond DIY fix lol. I just want something newer. Old BMW's throw up big issues which I am no longer prepared to put up with.

TrustyOven

TheDebtinator wrote: »

It's beyond DIY fix lol. I just want something newer. Old BMW's throw up big issues which I am no longer prepared to put up with.

Old BMWs may have less tech inside them and thus could be cheaper and simpler to fix than newer cars.

You could probably DIY and save yourself a lot of money and not have to get a loan and pay interest on the loan and be indebted to someone.

Grzegorz_Kowalski

TrustyOven wrote: »

Old BMWs may have less tech inside them and thus could be cheaper and simpler to fix than newer cars.

You could probably DIY and save yourself a lot of money and not have to get a loan and pay interest on the loan and be indebted to someone.

I followed this advice and 10 years later, I have ended up with the garage full of tools (worth approx 5k) and the hell of experience and skills. I must admit, in the last decade, I haven't paid more for the MOT than the nominal charge :-)
How much I have actually SAVED by doing so, it would be really difficult to estimate.

TheDebtinator

It's an M5. Therefore comes with M tax. Engine needs a complete rebuild unfortunately.

TrustyOven

TheDebtinator wrote: »

It's an M5. Therefore comes with M tax. Engine needs a complete rebuild unfortunately.

Ouch!
What exactly is wrong with it?

How much would it cost to rebuild the engine?
Will 10k (which you are proposing to get on loan) be enough to rebuild the engine and continue to enjoy such a lovely car?