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Second Application for Better Rate

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  • We have about £80k coming in per year. Mortgage is not all that different from what our rent for many years was.
  • If you can afford to over pay just take what you get. Paying extra each month won’t matter you will be bringing % down considerably.
    Multiple loan applications in a short period is a negative for your credit file.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    If it's a car you want to borrow money to buy have you explored other finance options such as PCP or HP and compared them against using a personal loan? Dealerships usually give financial incentives for using their finance, some may offer better rates than M&S, some worse but you need to consider the overall cost of the finance and not just focus on the APR.
  • Your probably too tight on the Affordability assessment for a preferential rate?

    What surplus cash do you have for the loan? And how big is your mortgage commitments?

    Sometimes you can earn a decent salary, but if you have too many commitments or a squeezed income, Lenders don't give you the low rates.

    If Barclays are offering you 10% and Sainsburys 8% I think this means you should maybe hang on for a while and bring your mortgage down 12 months in and then to add another debt may not be wise.

    In the time you wait save up the money you would of paid for the car and use it as a deposit in 12 months so you require a smaller loan.
    Save £12k in 2019 -
  • Just to update... The M&S offer was 0.6% worse, so I have opted for the Sainsbury's loan, which I will regularly overpay in order to minimize cash wasted. It's not the best outcome, and perhaps waiting a while post home purchase would have been better. But sometimes in life you have to take a hit to live as you wish to (within reason). Thank you all for your replies and guidance. They were very much appreciated.
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Lisa105 wrote: »
    Hi guys! I am new user from this forums.


    Thats nice to hear.
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