Loan offered, but not at advertised rate, should I apply elsewhere for a better rate?

glo1967

Hi all,


Just looking for a bit of advice. I applied for a loan with Sainsburys bank & have been offered the loan requested, but not at the advertised rate of 2.8%, they have offered at 4.1%. Do you think it is worth applying with another lender at a lesser rate?

Pixie5740

glo1967 wrote: »

Hi all,


Just looking for a bit of advice. I applied for a loan with Sainsburys bank & have been offered the loan requested, but not at the [STRIKE]advertised rate[/STRIKE] representative APR of 2.8%, they have offered at 4.1%. Do you think it is worth applying with another lender at a lesser rate?

It might be worth applying to another lender to see if you are offered a better rate. One more application won't hurt but beware of making multiple applications within a short time frame.

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

Willing2Learn

Hi glo1967,

I think 4.1% is a good low rate and it probably reflects your application and the data held in your credit file. If it were me, I would stick with the 4.1%

Good luck!!

DCFC79

glo1967 wrote: »

Hi all,


Just looking for a bit of advice. I applied for a loan with Sainsburys bank & have been offered the loan requested, but not at the advertised rate of 2.8%, they have offered at 4.1%. Do you think it is worth applying with another lender at a lesser rate?

Give it a try, 4.1 is still a good rate.


A sensible poster who is reasonable about not being offered the representative rate.

foxy-stoat

How much interest would you save if you did get offered a loan 1.3% less interest?

glo1967

foxy-stoat wrote: »

How much interest would you save if you did get offered a loan 1.3% less interest?

The difference is probably around £600.

[Deleted User]

On those figures I calculate (guess) £15000-ish over 7 years-ish.

You have the offer at a cost of £85 a year against not having any offer at all. Depends how much the need is.

Craig1981

why not check with nationwide and rate setter? they have free soft search quotations which will give you an idea of APR with them.

only 51% of applicants will be given advertised rate. 4.1% is a really good deal. if you not making any further applications in the near future, then give it go... try Tesco, they give decent rates to clubcard holders too.

Craig1981

DCFC79 wrote: »

A sensible poster who is reasonable about not being offered the representative rate.

agreed! :T

DCFC79

Craig1981 wrote: »

agreed! :T

It makes a change.