Nationwide match plus original offer?

Stoodles

In order to borrow £30k, can we apply to Sainsbury's for £15k and if accepted go to Nationwide for their loan match, then also take out the original Sainsbury loan as well? That seems to offer the best rates, but it feels as though must be a hitch or it would be the recommended approach

Sainsbury's Bank is showing as 90% acceptance chance in the Eligibility Checker

[Deleted User]

You may find the second lender doesn't want to lend to you once you have taken a large sum elsewhere.

Sncjw

How much do you earn?
Do you have other debts?

Clive_Woody

I applied for a loan of £20k from TSB, got the headline rate, then got the Nationwide deal at 0.5% less. Within 48hrs I had £40k in my account. I paid off TSB immediately.

I can't remember if there was something in the Nationwide T&Cs about agreeing to repay the other loan but as this was my plan anyway I didn't make a point of looking for it.

Stoodles

Sncjw wrote: »

How much do you earn?
Do you have other debts?

Thanks for your concern. Household income is enough to pay the loan off in three years, and the only current debt is the mortgage, which after sustained overpaying has just dropped below £10k

Deleted_User wrote: »

You may find the second lender doesn't want to lend to you once you have taken a large sum elsewhere.

I think that is the aspect that makes me feel uncomfortable. Sainsbury would make their offer in the absence of any other application, and presumably once NW have agreed their lower rate, Sainsbury have no reason to check again, as I appear simply to be taking the loan they already agreed.

The outcome would be a loan at below 2.5% instead of at the 6.9% which looks like the best rate on offer for a single £28K loan

ReadingTim

Stoodles wrote: »

I think that is the aspect that makes me feel uncomfortable. Sainsbury would make their offer in the absence of any other application, and presumably once NW have agreed their lower rate, Sainsbury have no reason to check again, as I appear simply to be taking the loan they already agreed.

Of course it should make you feel uncomfortable - you're lying and hope you don't get caught doing so. In your application, you will be declaring to them 'the absence of any other application', which whilst technically momentarily correct, is fundamentally dishonest.

You may therefore wish to consider what markings might be made on your credit history should Sainsburys check again before paying out and "discover" the Nationwide loan before embarking on this course of action - they might be more wide-ranging than simply being declined or offered a higher rate.

Your call, but your approach won't be the recommended approach for a reason..

Stoodles

That makes sense. I haven't looked at the loan application forms, and it has been more than twenty years since I last took out a loan, so I don't recall what was on that. Hence my question.

I can't imagine needing to borrow again in the next ten years, so I don't think the credit history matters to me. However, lying is an issue, so I wouldn't do it. I'll look at the detail of the forms and conditions.

ReadingTim

Stoodles wrote: »

I can't imagine needing to borrow again in the next ten years, so I don't think the credit history matters to me. However, lying is an issue, so I wouldn't do it. I'll look at the detail of the forms and conditions.

It's not just borrowing money were markings on your credit file/history can have an impact, as this story illustrates....

Geht_fit

We did exactly that last year. We needed £40,000 for renovation work, so my husband applied for a Sainsburys loan first (highest chance if acceptance at a good rate), then he got the better offer at Nationwide. I seem to remember that they would only match up to £25,000 though? I then took a £15,000 loan for the remainder via Zopa. Could you split the loan this way with your partner?

Geht_fit

I should say that we didn't take the Sainsburys loan.

Stoodles

It's a shame that the interest rate jumps from 2.2% to 6.9% as soon as you borrow more than £25,000. I don't think the level of risk ramps up so abruptly, and we have demonstrated affordability to ourselves by saving the amount we would repay For us, I think the answer will be to save for longer, so we can keep the rate lower.

I can't take out an individual loan, as I am unable to work. My disability income can be taken into account as part of the household income, but not on its own. That is particularly frustrating as the loan is for disability related expenditure.