Mystical Headline Rates - £22k Loan

byethecrin

Ow Do,


I am looking for a 22k loan and have excellent credit scores (MSE Credit Club = 999, Noodle = 651, Clearscore = 561). Utilities aside, my only outgoing is £340ish/month mortgage, from a takehome of well over £2100. I assumed, I would be good to go....


So basically here is how my day has gone.

• Went to bank, offered what I wanted @ 3.9%
• Bank mentioned they would do a 0.5% beating of any accepted offer
• Noticed Sainsburys @ 2.9% and thought, worth a crack
• Applied and was accepted at 4.2%

This would still give me a rate of 3.7% based on the 0.5% offer, however it begs the question who are the 51% of people who get this mystical 2.9% offer? I would have thought I would be nailed on with my current credit socres, but alas not.... Or is it just not possible on such a high loan?


I am keen not to be applying to every man and his dog, due to credit checks, but does anyone know if any of the other providers may be a little more open to offering a rate closer to the headliner?


Cheers
BTC.

PeacefulWaters

Your credit score means naff all.

End of game.

Pixie5740

https://www.moneysavingexpert.com/loans/credit-rating-credit-score

https://www.moneysavingexpert.com/banking/interest-rates

Pixie5740

Surely the more pertinent question is who are these people, who are rated so highly by the credit reference agencies, that keep joining the forum to start threads about not being offered the representative APR?

byethecrin

OK, guessing this has been asked before then... a lot...


Right, I'll word it differently then....


All three credit files have been checked line by line and are spot on. Do you think any other lender may go below 4.2%, that would be worth a risk applying to, or in your opinion, would you stick at 4.2, take the 3.7 from the bank and not have the hassle of extra credit searches?


Thanks Again!

foxy-stoat

I think take the rate you have been offered - just getting an offer of £22K unsecured is a big win.

MEM62

byethecrin wrote: »

Ow Do,

I am looking for a 22k loan and have excellent credit scores (MSE Credit Club = 999, Noodle = 651, Clearscore = 561). None of those companies lend money, which makes those scores are about as useful as a chocolate teapot. Utilities aside, my only outgoing is £340ish/month mortgage, from a takehome of well over £2100. I assumed, I would be good to go.... Well you know what they say about assumptions :-)

So basically here is how my day has gone.

• Went to bank, offered what I wanted @ 3.9% Result!
• Bank mentioned they would do a 0.5% beating of any accepted offer
• Noticed Sainsburys @ 2.9% and thought, worth a crack
• Applied and was accepted at 4.2%

This would still give me a rate of 3.7% based on the 0.5% offer, however it begs the question who are the 51% of people who get this mystical 2.9% offer? Those for whom £22K is not a huge percentage their income for a start. I would have thought I would be nailed on with my current credit socres, but alas not.... Or is it just not possible on such a high loan? Just as important as the size of the loan itself - or maybe even more so - is the amount of the loan compared to your income. What you are asking for is very high considering your income. Frankly, you have had a result securing the loan in the first place and an even better result with the rate you were offered.

I am keen not to be applying to every man and his dog, due to credit checks, but does anyone know if any of the other providers may be a little more open to offering a rate closer to the headliner? Personally, I would be well outside my comfort zone entertaining that level of debt at your income level but if you are intent on going ahead the deal you have been offered is reasonable.

Cheers
BTC.

There might be other avenues of borrowing depending on what the loan is for. If you are willing to share that info perhaps someone will have an alternative suggestion. (And please don't say that it's for a car)

DCFC79

byethecrin wrote: »

OK, guessing this has been asked before then... a lot...


Right, I'll word it differently then....


All three credit files have been checked line by line and are spot on. Do you think any other lender may go below 4.2%, that would be worth a risk applying to, or in your opinion, would you stick at 4.2, take the 3.7 from the bank and not have the hassle of extra credit searches?


Thanks Again!

Your scores can be a reflection of how your report is from the view of the agency.

In reference to do we know of any lenders who are more open to offering the headline rate, well thats hard to provide an answer since lender A will offer me the headline rate but not MEM62, just an example.

The 3.7% is a good rate, go for it.

Xbigman

If a loan is advertised along the lines of £10k to 25k at 2.9% then the amount being borrowed is a major factor in the rate offered, as is the term it would be borrowed over.
3.7% is a good rate for 22k.


Darren

iolanthe07

You've done well to be offered a £22K loan. It is a higher proportion of your income than many lenders would entertain, and the rate is a good one. Go for it.

Clive_Woody

TSB offered me £20K at 2.9%, Nationwide beat this by 0.5%.

I am also 999 fairy magic points from somebody or other, but my take home is considerably higher.