TSB Loan offer

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  • zippygeorgeandben
    zippygeorgeandben Posts: 1,273 Forumite
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    YorkshireBoy wrote: »
    Not quite. At least 51% of successful applicants will get the 'advertised' representative rate. Up to 49% of successful applicants will be offered a different rate.

    Ahh this is why I rarely post to advise! Scared of being wrong, like in this case!
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • Steve_GP220
    Steve_GP220 Posts: 62 Forumite
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    Deleted_User wrote: »
    Which rate would you advertise, when they may have 6 or more tiers?

    The majority rate is the only one that makes sense.

    Like I said really - the intermediate rate! They do that 3.2% for the chosen few, I'd bet in the real world, that more get offered the 7.5% and then a few get the 15% plus. I'm not sure what you mean by 6 tiers? Maybe my view is simplified somewhat - but in my experience FD (and I use them as my example because I have many years experience with them) those looking for a personal loan only get to see 3 rates.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    51% get the headline rate, so no, fewer get 7.5%.

    By 6 tiers, I mean that some lenders have multiple downsell rates, according to risk.
  • Steve_GP220
    Steve_GP220 Posts: 62 Forumite
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    Deleted_User wrote: »
    51% get the headline rate, so no, fewer get 7.5%.

    I'd love to see irrefutable proof that 51% get the headline rate. How would we ever know that? How would we ever check? And yet, there is advertising kudos in splashing that low rate over the site.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    All I can tell is that I've not seen a lender who has tried to break it.

    What I have seen is the serious concern when the figure falls below 51%. That then leads you to have to relax your risk and acceptance criteria and accept applicants at your headline rate, who otherwise would not have made the cut.

    I can't think of a lender who would take the gamble, though that's not to say there isn't one out there.
  • System
    System Posts: 178,093 Community Admin
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    Steve_GP220 wrote: »
    I'd love to see irrefutable proof that 51% get the headline rate. How would we ever know that? How would we ever check? And yet, there is advertising kudos in splashing that low rate over the site.

    The FSA would know it. The banks are required to keep records.
  • Angryharry
    Angryharry Posts: 2 Newbie
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    Many thanks for all your replies. Do think it's possible that my credit rating might be effected by the fact I've only been in my current employment for 3 years?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    3 years is more than sufficient to show stability to lenders.
  • jimbolee
    jimbolee Posts: 3 Newbie
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    I have just had a similar experience with M&S - offering an eye-caching 2.8% APR *representative*

    Experian tells me my score is "999"
    My annual income is well over 50k
    I am married, my wife works
    My mortgage has 6 years left
    I have about 180k equity in my house
    I have lived in same house for 16 years
    Plenty of disposable income
    I have not applied for any other loans for years
    Current job for over 3 years (continuous employment for over 20 years)
    etc, etc.

    And yet I am offered 5.4% on application for 13k to buy new car.

    The trouble as I see it is the incentive to lenders is to advertise aggressively with these low rates to top the charts. But it affects your credit score if you apply and do not get the headline rate and then want to rethink. You do that for 5 or 6 loans and you start to reduce your score.

    Would it not be better for the FSA to force banks to show a "range" of APR's that 80% or even 90% of applicants will get? The 51% rule is not high enough in my view.

    Then perhaps the rate "range" may have to be advertised like this: "90% of our successful applicants will get a rate between 2.8% and 4%".

    I think the word "representative" is too misleading.
    Anyway - just a thought.
  • anto164
    anto164 Posts: 174 Forumite
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    Steve_GP220 wrote: »
    First Direct do this. They absolutely splash their 3.2% all over their website. I've been with FD for YEARS and have never managed to get the lowest rate. And I've done loans of £25k, £20k, £10k etc etc and the best rate I have managed is 7.5%. I've never defaulted, never missed a payment. I kind of understand them luring people into the process with the lower rate splash but wouldn't they be better off say advertising the intermediate rate of 7.5% and then 'surprising and delighting' those they consider suitable, with the lower rate?

    Its like the FD mortgage calculator - mean have you seen it? Put in what you earn and see what they 'could' lend as a mortgage. What is the point of that calculator? No-one will ever get those loans.

    Errrm, i got the headline rate when i got a FD loan earlier this year :rotfl:
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