If I've been accepted for a loan but at a higher rate is it worth trying another lender?

c7borg

I've just been accepted for a loan but at a higher rate 5.9 instead of 2.8 is it worth trying another lender to get it lower now I have been accepted?

The lender was Marks and Spencer and I was thinking of trying Sainsburys.

[Deleted User]

It's always worth having one more try.

foxy-stoat

Yes, try for a better rate and report back.

c7borg

Nearly 3 weeks after applying I still had no official reply from Marks and Spencer, no reference, no courtesy email to say they're working on it.. So I decide to call again, the operator sounds slightly surprised and speaks with the underwriter, meanwhile I'm thinking this is ridiculous, I lost my patience and filled in an application to Sainsburys whilst I was on hold within 2 minutes I had been accepted at a lower rate of 2.9%.. then the operator comes back on the phone "Hello Mr X, I'm please to say your loan has been approved at 5.9%".. slight pause politely I respond "Erm.. oh thank you send me the details and I'll have a look, thank you".. I hang up "..Not".

Anyways..

I did a bit of research and found that M&S backs off it's loans to HSBC who ironically I bank with, this might explain why approval takes so long, either that or they are overwhelmed with applicants.

However it's worth pointing out that Sainsburys are their own bank hence being able to make instant decisions.

I'll report back as to how long it takes to go in the bank.

foxy-stoat

They get a lot of applications as M&S and Sainsburys put one of the lowest headline rates in their adverts.

Bermonia

It may be worth noting that these headline rates are in essence risk based - that is to say if you tick all the right boxes you will be accepted at that rate, however if you don’t then the rate will rise based upon the level of risk - deemed nicer than to merely just reject your application.