Research reveals homeowner loan lottery

One in six people in the UK who take the time to compare loans and find the best rate homeowner loan are not offered the rate they apply for, says new research.

The number who were refused the best rate homeowner loan that they applied for and were offered a higher rate instead rose to a quarter of those aged between 30 and 50.

Best rate homeowner loan researchers say that the results have revealed the “lottery” of the UK credit system, where 93 per cent of homeowner loan providers offer “typical” loan best rate deals calculated on a price for risk basis.

A quarter of those polled said they have previously been refused homeowner loan borrowing. Of those refused, 61 per cent found that they were then offered the best rate elsewhere.

Researchers have warned people who compare loans that the number of refusals shown on their credit statement may increase the cost of obtaining homeowner loan credit
Credit companies currently only have to offer their best rate to 66 per cent of homeowner loan applicants, and do not have to reveal their higher rates until an application has been made.

“As our research shows, there’s a lot of confusion and even embarrassment when applying for credit,” said best rate analyst Stuart Glendinning. “Any consumer can compare loans, no matter what their individual credit profile is.”

© Adfero Ltd

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