Hitachi cheapest loans - but you wont get that rate

wllmherk

Pete,
I had a similar experience in June this year. I was looking to borrow 20k for a car, had used Sainsbury's in the past as usually competitive, illustrative rate 3.7%, after application, I was offered 8.9%. I was raging, my circumstances are as follows-

Debts-0
Mortgage-cleared 2 years ago
credit cards-0
House-worth £160,000
Joint Gross Income-£72,000pa
Credit history-never missed a mortgage or loan payment ever.
Previous loans -always paid off early
Never been bankrupt or subject of court proceedings
Employment-FT, 18 years with current employer, wife 35 years with current employer

I asked the same question, what would I need to do to qualify for the best rate?
They couldn't answer, it's a con, once they reach their 51% no one gets the best rate.

wllm

boo_star

wllmherk wrote: »

Pete,
I had a similar experience in June this year. I was looking to borrow 20k for a car, had used Sainsbury's in the past as usually competitive, illustrative rate 3.7%, after application, I was offered 8.9%. I was raging, my circumstances are as follows-

Debts-0
Mortgage-cleared 2 years ago
credit cards-0
House-worth £160,000
Joint Gross Income-£72,000pa
Credit history-never missed a mortgage or loan payment ever.
Previous loans -always paid off early
Never been bankrupt or subject of court proceedings
Employment-FT, 18 years with current employer, wife 35 years with current employer

I asked the same question, what would I need to do to qualify for the best rate?
They couldn't answer, it's a con, once they reach their 51% no one gets the best rate.

wllm

They won't tell you because the front line staff won't know and it's commercially sensitive information anyway.

DCFC79

wllmherk wrote: »

Pete,
I had a similar experience in June this year. I was looking to borrow 20k for a car, had used Sainsbury's in the past as usually competitive, illustrative rate 3.7%, after application, I was offered 8.9%. I was raging, my circumstances are as follows-

Debts-0
Mortgage-cleared 2 years ago
credit cards-0
House-worth £160,000
Joint Gross Income-£72,000pa
Credit history-never missed a mortgage or loan payment ever.
Previous loans -always paid off early
Never been bankrupt or subject of court proceedings
Employment-FT, 18 years with current employer, wife 35 years with current employer

I asked the same question, what would I need to do to qualify for the best rate?
They couldn't answer, it's a con, once they reach their 51% no one gets the best rate.

wllm

I bet you were raging.

8.9% isnt bad, not really something to get raging about.

Lenders dont have to lend to you or any of us.

[Deleted User]

wllmherk wrote: »

it's a con, once they reach their 51% no one gets the best rate.

Percentages don't work like that.

Gaz83

wllmherk wrote: »

Previous loans -always paid off early

If you've paid off loans early, then lenders haven't made as much money from you as they expected to when they previously lent you money. They'll be offering you a higher rate in case you do the same again.

jonesMUFCforever

Just look at the home page of Hitachi Finance.

It quite clearly states that the best rates are for loans of £7500 upwards.

So this whole thread has been a waste of time as he only applied for £5000.
Lets not stop a good winge though yeah?

Brock_and_Roll

Well I have had two loans from Hitachi over the last decade for eye treatment and got 0% on both occasions.

Clearly they dont think I need a loan...and they are right!

wllmherk

The point I'm making is if I can't secure the best loan rates given my circumstances as described above then who is?
Surely lending criteria is based on risk, the risk of me defaulting is very small so why am I being offered a rate more than double the advertised best rate?
8.9% is much higher than the loan rates I've paid in the past, despite clearing my mortgage and other loans. It makes no sense to me.

jonesMUFCforever

wllmherk wrote: »

The point I'm making is if I can't secure the best loan rates given my circumstances as described above then who is?
Surely lending criteria is based on risk, the risk of me defaulting is very small so why am I being offered a rate more than double the advertised best rate?
8.9% is much higher than the loan rates I've paid in the past, despite clearing my mortgage and other loans. It makes no sense to me.

Did you apply for £7500 or more?
If not why not try an application for that amount and come back with the result?
All mainstream lenders work like this - the higher the amount of the loan the lower the potential APR may be.

boo_star

wllmherk wrote: »

The point I'm making is if I can't secure the best loan rates given my circumstances as described above then who is?
Surely lending criteria is based on risk, the risk of me defaulting is very small so why am I being offered a rate more than double the advertised best rate?
8.9% is much higher than the loan rates I've paid in the past, despite clearing my mortgage and other loans. It makes no sense to me.

Risk is one element but not the only one.