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

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glo1967
glo1967 Posts: 230 Forumite
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?
HOW TO SAVE MONEY - LEAVE TEENAGE DAUGHTERS AT HOME WHEN SHOPPING

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    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/
  • 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!!
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    How much interest would you save if you did get offered a loan 1.3% less interest?
  • glo1967
    glo1967 Posts: 230 Forumite
    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.
    HOW TO SAVE MONEY - LEAVE TEENAGE DAUGHTERS AT HOME WHEN SHOPPING
  • 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
    Craig1981 Posts: 769 Forumite
    Third Anniversary
    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
    Craig1981 Posts: 769 Forumite
    Third Anniversary
    DCFC79 wrote: »
    A sensible poster who is reasonable about not being offered the representative rate.

    agreed! :T
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Craig1981 wrote: »
    agreed! :T
    It makes a change.
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