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  • FIRST POST
    • Stoodles
    • By Stoodles 11th Apr 18, 1:18 PM
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    Stoodles
    Nationwide match plus original offer?
    • #1
    • 11th Apr 18, 1:18 PM
    Nationwide match plus original offer? 11th Apr 18 at 1:18 PM
    In order to borrow 30k, can we apply to Sainsbury's for 15k and if accepted go to Nationwide for their loan match, then also take out the original Sainsbury loan as well? That seems to offer the best rates, but it feels as though must be a hitch or it would be the recommended approach

    Sainsbury's Bank is showing as 90% acceptance chance in the Eligibility Checker
Page 1
    • zx81
    • By zx81 11th Apr 18, 4:24 PM
    • 16,408 Posts
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    zx81
    • #2
    • 11th Apr 18, 4:24 PM
    • #2
    • 11th Apr 18, 4:24 PM
    You may find the second lender doesn't want to lend to you once you have taken a large sum elsewhere.
    • Sncjw
    • By Sncjw 11th Apr 18, 7:01 PM
    • 1,692 Posts
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    Sncjw
    • #3
    • 11th Apr 18, 7:01 PM
    • #3
    • 11th Apr 18, 7:01 PM
    How much do you earn?
    Do you have other debts?
    • Clive Woody
    • By Clive Woody 11th Apr 18, 10:26 PM
    • 4,444 Posts
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    Clive Woody
    • #4
    • 11th Apr 18, 10:26 PM
    • #4
    • 11th Apr 18, 10:26 PM
    I applied for a loan of 20k from TSB, got the headline rate, then got the Nationwide deal at 0.5% less. Within 48hrs I had 40k in my account. I paid off TSB immediately.

    I can't remember if there was something in the Nationwide T&Cs about agreeing to repay the other loan but as this was my plan anyway I didn't make a point of looking for it.
    Rugby Union - The Greatest Game
    • Stoodles
    • By Stoodles 12th Apr 18, 9:33 AM
    • 697 Posts
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    Stoodles
    • #5
    • 12th Apr 18, 9:33 AM
    • #5
    • 12th Apr 18, 9:33 AM
    How much do you earn?
    Do you have other debts?
    Originally posted by Sncjw
    Thanks for your concern. Household income is enough to pay the loan off in three years, and the only current debt is the mortgage, which after sustained overpaying has just dropped below 10k

    You may find the second lender doesn't want to lend to you once you have taken a large sum elsewhere.
    Originally posted by zx81
    I think that is the aspect that makes me feel uncomfortable. Sainsbury would make their offer in the absence of any other application, and presumably once NW have agreed their lower rate, Sainsbury have no reason to check again, as I appear simply to be taking the loan they already agreed.

    The outcome would be a loan at below 2.5% instead of at the 6.9% which looks like the best rate on offer for a single 28K loan
    • ReadingTim
    • By ReadingTim 12th Apr 18, 10:44 AM
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    ReadingTim
    • #6
    • 12th Apr 18, 10:44 AM
    • #6
    • 12th Apr 18, 10:44 AM
    I think that is the aspect that makes me feel uncomfortable. Sainsbury would make their offer in the absence of any other application, and presumably once NW have agreed their lower rate, Sainsbury have no reason to check again, as I appear simply to be taking the loan they already agreed.
    Originally posted by Stoodles
    Of course it should make you feel uncomfortable - you're lying and hope you don't get caught doing so. In your application, you will be declaring to them 'the absence of any other application', which whilst technically momentarily correct, is fundamentally dishonest.

    You may therefore wish to consider what markings might be made on your credit history should Sainsburys check again before paying out and "discover" the Nationwide loan before embarking on this course of action - they might be more wide-ranging than simply being declined or offered a higher rate.

    Your call, but your approach won't be the recommended approach for a reason..
    • Stoodles
    • By Stoodles 13th Apr 18, 10:07 AM
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    Stoodles
    • #7
    • 13th Apr 18, 10:07 AM
    • #7
    • 13th Apr 18, 10:07 AM
    That makes sense. I haven't looked at the loan application forms, and it has been more than twenty years since I last took out a loan, so I don't recall what was on that. Hence my question.

    I can't imagine needing to borrow again in the next ten years, so I don't think the credit history matters to me. However, lying is an issue, so I wouldn't do it. I'll look at the detail of the forms and conditions.
    • ReadingTim
    • By ReadingTim 13th Apr 18, 11:23 AM
    • 2,553 Posts
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    ReadingTim
    • #8
    • 13th Apr 18, 11:23 AM
    • #8
    • 13th Apr 18, 11:23 AM
    I can't imagine needing to borrow again in the next ten years, so I don't think the credit history matters to me. However, lying is an issue, so I wouldn't do it. I'll look at the detail of the forms and conditions.
    Originally posted by Stoodles
    It's not just borrowing money were markings on your credit file/history can have an impact, as this story illustrates....
    • Geht fit
    • By Geht fit 13th Apr 18, 12:05 PM
    • 28 Posts
    • 12 Thanks
    Geht fit
    • #9
    • 13th Apr 18, 12:05 PM
    • #9
    • 13th Apr 18, 12:05 PM
    We did exactly that last year. We needed 40,000 for renovation work, so my husband applied for a Sainsburys loan first (highest chance if acceptance at a good rate), then he got the better offer at Nationwide. I seem to remember that they would only match up to 25,000 though? I then took a 15,000 loan for the remainder via Zopa. Could you split the loan this way with your partner?
    • Geht fit
    • By Geht fit 13th Apr 18, 12:07 PM
    • 28 Posts
    • 12 Thanks
    Geht fit
    I should say that we didn't take the Sainsburys loan.
    • Stoodles
    • By Stoodles 13th Apr 18, 7:06 PM
    • 697 Posts
    • 8,999 Thanks
    Stoodles
    It's a shame that the interest rate jumps from 2.2% to 6.9% as soon as you borrow more than 25,000. I don't think the level of risk ramps up so abruptly, and we have demonstrated affordability to ourselves by saving the amount we would repay For us, I think the answer will be to save for longer, so we can keep the rate lower.

    I can't take out an individual loan, as I am unable to work. My disability income can be taken into account as part of the household income, but not on its own. That is particularly frustrating as the loan is for disability related expenditure.
    • Clive Woody
    • By Clive Woody 13th Apr 18, 7:58 PM
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    Clive Woody
    .....In your application, you will be declaring to them 'the absence of any other application'.....
    Originally posted by ReadingTim
    I have no recollection of reading that in the declarations I made when I applied for a loan. Maybe I missed it, but either was the OP could honestly answer that they have made no other applications at the time of the current application.

    As stated I applied for a TSB loan and was successful. I then went to my local Nationwide branch and asked for their -0.5% price match thingy (bringing the rate down to 2.4%), making it very clear that I already had a loan approved by TSB that would be hitting my account very soon. They had no issue honouring their offer and at no point did Nationwide state that their loan was conditional on me repaying the TSB loan.
    Rugby Union - The Greatest Game
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