When it comes to investing, there are numerous questions that need to be asked, and lots of things which need to be properly understood before committing your hard-earned money
Case study: Getting to know borrower Andrew
Andy is an Agriculture Engineer, and lives with his wife in Leek, Staffordshire on the outskirts of the Peak District. One of the realities of living in such a nice part of the world is that convenience in terms of travel tends to lie with owning a vehicle, rather than depending on public transport. So when Andy had a nasty surprise with his old faithful Ford Ka, he needed to make a plan quickly…
Me and my car troubles
I’ve never been particularly passionate about cars, and for me they’re just a means to get from A to B, and preferably as efficiently as possible. For years I had driven my old vehicle – a Ford Ka – around without any major problems. So when it came up for its MOT earlier this year, it seemed like a formality.
How wrong I was. It was surprising to me that the car failed its MOT. But that didn’t hold a candle to what happened next. To my disbelief, the mechanic suggested that I would be wasting my time and money trying to do the necessary repairs, and that the best thing for me to do would be to scrap it – even though the car was only 12-years old!
In fairness, he went into great detail as to why the car was essentially a write off, and explained the nitty gritty of what was wrong to me. But, suffice it to say, it wasn’t how I expected the day to go, and I found myself in a bit of a pickle. My offices are more than 10 miles from home, so it meant that I was suddenly in a race against time to get a replacement.
The first thing I had to do was find the right car, and this wasn’t so easy for me. Last year I had a hip replacement operation, and I was thus limited to finding cars which are set higher up, and thus easier for me to get into. Fortunately, at one of the first dealerships I went to, I stumbled across this Citroen Picasso, which, as an MPV, suited me perfectly.
Financing the car
I was pretty pleased to find the Picasso, and managed to negotiate a decent price with the dealer. But I didn’t have the funds lying around to buy it cash, so I knew I would have to finance it somehow.
The best rate the garage would do for me was an APR of 17.9%, which seemed a bit steep to me. It would have been convenient, but I resisted the urge to accept, as I thought I could do better.
The next port of call was my bank, but that was a waste of time as their APR would have been 23.6%. So I decided to shop around on some comparison sites, and that’s when I came across Lending Works. I was a bit sceptical when I saw that the Rep APR was 5.9%, as it seemed too good to be true. But after I made my application, the rate I was quoted was none other than 5.9%.
Accepting and paying off the loan
It was a no brainer for me to accept the loan offer, and I couldn’t believe how quick and easy the process was. All done online, no need for an appointment, and I literally had the funds within 24 hours. At 54, it’s been a while since I’ve taken out a loan, and it’s fair to say the nature of the market has changed a lot in that time!
As a borrower, what you’re after is expedience and convenience, and that’s exactly what I got from Lending Works. Not only have I recommended you to friends, but I really think more mainstream car finance providers will have to up their game if they are to keep up.
Anyway, taking on debt doesn’t worry me, even at my age. It was a necessity for me at the time, but in two years I’ll be debt free. And in the meantime, I’ve got a great new set of wheels which will hopefully last me a long time!
Related articles:
- Case study: A quick chat with borrower Wayne
- Case study: We hear from borrower Carol
- Case study: Borrower Charlotte speaks to us
Get email updates for future blogs:
For all the resilience the UK economy has shown, there is no doubt that this year's ISA season is set against a backdrop of uncertainty. Whatever the pros and cons, Brexit, and a lack of clarity on what our future economic relationship with the EU will look like, has left us at a crossroads.
The housing crisis in the UK is widely mentioned in the media, but the extent of it is often underestimated.
The Lifetime ISA (LISA), announced in 2016, would prove to be one of George Osborne’s last flagship gestures to UK savers and investors as Chancellor, eventually launching against a backdrop of anti-climax a year later in April 2017.
As the tax year end approaches, the financial services industry readies itself for a flurry of activity. That's in large part because, with just a couple of months to go, the so-called 'ISA season' is upon us.
Featured
Over the last decade, there can be little dispute that the reputation of mainstream banks – and particularly the so-called ‘Big Four’ (HSBC, Barclays, Lloyds and RBS) – is at its lowest ebb.
The idea of peer-to-peer (P2P) lending is a simple one; you lend money to those who wish to borrow, with a view to receiving a great return for doing so.
The peer-to-peer (P2P) lending industry is now regulated by the Financial Conduct Authority (FCA). The regulatory framework has been designed to protect customers and promote effective competition.
Loan underwriting is the process that we undertake to analyse all of the information provided by each loan applicant and their credit file to assess whether or not that applicant meets our minimum loan criteria. As part of that process all data is verified, analysed and summarised to paint a picture of each applicant.
When you earn interest from a regular bank savings account, for example, the bank automatically deducts basic rate tax (currently 20%) before paying your interest. With interest earned from peer-to-peer lending, tax is not deducted automatically so lenders will need to declare their income to HMRC.
Most popular
On 13th January, the open banking era completed its first year in existence, so it represents a natural juncture to reflect upon the past 12 months
Perhaps the word 'fanfare' would be overstating the recent response to an uptick in UK savings rates.
As 2019 moves into full swing, a big priority for every household should be to get their finances into the best possible shape.
Clearly there is one story which is dominating the headlines at the moment: Brexit.
As 2018 draws to a close, with our bellies full of Christmas turkey, it's only natural to look back on the past 12 months and reflect. No doubt, it's been a turbulent one economically and politically, and not everyone has had it all their own way.
