M&S Loan 2.8%, referred to underwriters?

gavcradd

Just applied for the market-leading loan with M&S Bank at 2.8%. Assumed I would be automatically be given a decison at the end like with all other banks I've dealt with recently. No - an email saying that it has been referred to their underwriters and a decision will be given within 5 days.

Seems very strange... I have a 999 rating on the MoneySavingExpert credit club, never missed any payments, married, own my own house, been with the same bank (HSBC) for 20 years, under 40 years old, minimal other credit cards, etc, work as a teacher for 15+ years earning good money. I last week paid off my previous £10k loan for a conservatory and this loan is for £15k for a new kitchen.

I've seen older threads saying that M&S refer everything to underwriters. Am I worrying unnecessarily?

YorkshireBoy

Always best to avoid weekends (especially Sundays) and late evenings when making credit applications. This is because the CRA links are invariably down.

System

Might be the £15k loan you've just got for a kitchen coupled with balances on your credit cards and your mortgage repayments that are putting you close or above the limit for passing the affordability test with your salary.

gavcradd

I'd hope it wouldn't be affordability - literally just paid off my conservatory loan that was £200 per month (and paid without issue for many years), and this new loan would be £197 per month. Plus my income has gone up and other debts gone down (both significantly) since then!

Will just wait it out...

gavcradd

Tarambor wrote: »

Might be the £15k loan you've just got for a kitchen

Sorry - this M&S loan application is £15k for the kitchen.

iolanthe07

The 2.8% will only be offered to 51% of successful applicants. You may well be offered a loan at a higher rate than that.

YorkshireBoy

gavcradd wrote: »

I last week paid off my previous £10k loan for a conservatory

Just on this, and although you're at the end of a, say, 48 x £200 loan agreement, maybe their automatic systems would rather see a settled marker on the loan before extending further credit?

PeacefulWaters

gavcradd wrote: »

Seems very strange... I have a 999 rating on the MoneySavingExpert credit club?

You have a 2,500 top score on the PeacefulWaters not interested in lending to you club.

Given your desire to borrow repeatedly instead of save, it's not unreasonable that lenders take a little care before offering you credit.

I assume they'll say yes. But there does come a time where not taking on debt might be a good thing for you.

gavcradd

PeacefulWaters wrote: »

You have a 2,500 top score on the PeacefulWaters not interested in lending to you club.

Given your desire to borrow repeatedly instead of save, it's not unreasonable that lenders take a little care before offering you credit.

I assume they'll say yes. But there does come a time where not taking on debt might be a good thing for you.

Not sure that's called for... I have repeatedly borrowed, but also repeatedly paid back on time without issue. As Martin himself says, debt itself is not bad - a very cheapt (2.8%) loan for a planned purchase with payments that are easily affordable is far from bad. I also haven't told you a thing about my savings so you have nothing at all to base your judgement on except your own bad mood.

And in terms of update for anyone else looking at M&S loans, yes they have said yes. But it was via a letter rather than by the email that was mentioned on screen after the application. Bit strange as the letter must have been posted almost immediately after I hit submit (I applied on Sunday, got the letter on Thursday).

Clive_Woody

gavcradd wrote: »

Not sure that's called for... I have repeatedly borrowed, but also repeatedly paid back on time without issue. As Martin himself says, debt itself is not bad - a very cheapt (2.8%) loan for a planned purchase with payments that are easily affordable is far from bad. I also haven't told you a thing about my savings so you have nothing at all to base your judgement on except your own bad mood.

And in terms of update for anyone else looking at M&S loans, yes they have said yes. But it was via a letter rather than by the email that was mentioned on screen after the application. Bit strange as the letter must have been posted almost immediately after I hit submit (I applied on Sunday, got the letter on Thursday).

Just in case you are a Nationwide customer they promise to beat all loans by 0.5% with their price promise. Check their website.

I did this last week my rate came down to 2.4% :money: