Apply for second lender?

in Loans
8 replies 241 views
Lewigreg081281Lewigreg081281 Forumite
110 Posts
Part of the Furniture 10 Posts Combo Breaker
Hi,

i’ve applied for a loan today with a decent APR and it’s come out massively higher. I appreciate it’s for a small amount of customers the smaller rate, but the ta like 4x advertised. 

I know you shouldn’t apply to multiple lenders, but would it be a massive issue getting another quote?

its the pay the higher interest or affect credit score I’m guessing?

thanks 

Replies

  • edited 19 July at 7:13PM
    DrEskimoDrEskimo Forumite
    1.8K Posts
    1,000 Posts Third Anniversary Name Dropper
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    edited 19 July at 7:13PM
    Have a look at your credit files (ignore the score) and see if there is anything that could be causing that lender to assess you as higher risk.

    How much are you borrowing? What is it for? What is your debt to income ratio? Have you have any defaults?

    Certainly doesn't hurt to apply for another lender to see if they can offer a better rate.
  • Lewigreg081281Lewigreg081281 Forumite
    110 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Hi,

    it was woth post office. It advertised 2.9 and came out 6.8. I was surprised. 

    I’ve got a good credit score and never had this before previously. 

    I was going to try AA but I’ve always been told it affects your score massively if you apply for more than one. 
  • DrEskimoDrEskimo Forumite
    1.8K Posts
    1,000 Posts Third Anniversary Name Dropper
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    Hi,

    it was woth post office. It advertised 2.9 and came out 6.8. I was surprised. 

    I’ve got a good credit score and never had this before previously. 

    I was going to try AA but I’ve always been told it affects your score massively if you apply for more than one. 
    It's not an awful offer so its probably worth trying another lender. 1 or 2 searches won't be a red flag.

    It doesn't matter if it affects your score as lenders don't see your score. Focus more on the details of what you are borrowing and your history. These are what matter.
  • Lewigreg081281Lewigreg081281 Forumite
    110 Posts
    Part of the Furniture 10 Posts Combo Breaker
    The only thing I can think is we did have some additional borrowing in our mortgage for renovations last year. Nothing is looking off on the report though. 
  • Lewigreg081281Lewigreg081281 Forumite
    110 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Really annoying as I be seen a vehicle I’m wanting to purchase, but I’m up against it time wise. Are you able to accept and then use the cooling off period whilst I find a better rate?


  • FarfetchFarfetch Forumite
    2.1K Posts
    1,000 Posts Name Dropper
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    Hi,

    it was woth post office. It advertised 2.9 and came out 6.8. I was surprised. 

    I’ve got a good credit score and never had this before previously. 

    I was going to try AA but I’ve always been told it affects your score massively if you apply for more than one. 
    As you have been advised already, the score is irrelevant, it is not used in any decision making process. Ignore the numbers, check the 3 main credit agencies for anything erroneous on your files that might be spooking the lender - existing debt, some marker you missed etc

    He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery.

    -Harold Wilson


  • Lewigreg081281Lewigreg081281 Forumite
    110 Posts
    Part of the Furniture 10 Posts Combo Breaker
    So applied again and managed 2.9%. It must just be Post Office that felt the need to rip me off 😅 thanks all
  • p3ncilsharpenerp3ncilsharpener Forumite
    86 Posts
    10 Posts Name Dropper
    So applied again and managed 2.9%. It must just be Post Office that felt the need to rip me off 😅 thanks all
    6.9% isn't a rip-off.  Where's the eye-roll emoji when you need it?
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