Approved for loan APR higher than expected should I apply elsewhere or will it go against

oliel

Hi Applied for a loan online with Tesco Bank (Joint loan me n hubby)  Got approved but there was an error on the form I filled out online which I didn't notice when I sent the signed paperwork back - I had managed to somehow put my husbands first name twice! Tesco phoned and said they had to redo paperwork and carry out credit check and that they would then re approve loan and send new paperwork out.   When the new paperwork arrived the rate went form 8.8% to 13.8%  I have sent the paperwork back signed as we need the loan but I'm wondering if we should apply elsewhere or will that sabotage our current offer?   MBNA etc are always offering me loans but they dont appear to do joint loans which we would prefer?  Thanks

Sandtree

Your existing offer sounds like its now unconditional, but worth checking the paperwork that its not subject to any further checks.

You can normally apply elsewhere without risk to the original offer but the other lenders will see the credit search performed by the first firm and will consider that there may be additional borrowing materialising on top of what you;re asking them for.

oliel

It says when we return the documents to them they will make final checks and forward loan monies.  OK so Im thinking that i could just wait and take the loan and then once I have the loan I could apply elsewhere and repay it If we can get a better rate?  (its says we have 30 days from from the funds being advanced to cancel)

[Deleted User]

You'll struggle to get another loan at a better rate once you've taken the Tesco one.

I would try another application, but if your credit history is patchy, don't go for a top of the table lender.

oliel

what do you mean by top of the table lender?

[Deleted User]

The lowest rate lenders.

They can pick from the lowest risk applicants and others will be downsold to higher rates.

oliel

im just a bit worried if i apply elsewhere tesco won't give me loan then ill end up with no loan?

MalMonroe

oliel said:

Hi Applied for a loan online with Tesco Bank (Joint loan me n hubby)  Got approved but there was an error on the form I filled out online which I didn't notice when I sent the signed paperwork back - I had managed to somehow put my husbands first name twice! Tesco phoned and said they had to redo paperwork and carry out credit check and that they would then re approve loan and send new paperwork out.   When the new paperwork arrived the rate went form 8.8% to 13.8%  I have sent the paperwork back signed as we need the loan but I'm wondering if we should apply elsewhere or will that sabotage our current offer?   MBNA etc are always offering me loans but they dont appear to do joint loans which we would prefer?  Thanks

Did you ask them why the rate had changed? Was it just because of the confusion with your husband's name? 

When the new paperwork arrived with a different rate it would have been okay to just phone them and ask them why the rate had gone up if they didn't offer any explanation. You could still ask them why now.

oliel

Thank you I will Tesco a call I sent the paperwork back yesterday and the money is my account today.  So I applied today online with Sainsburys and have been approved at 10.1% so that is subject to usual checks so if I get the Sainsburys loan I will just cancel and repay my Tesco loan as I have 30 days to do so - would save me £1800 in interest!