The Sunday Times, 11th May 2014, Why switching job may stop you getting a loan
BORROWERS who change jobs or move home before applying for personal loans are unlikely to be offered the best rates on the market.
It might appear that the cost of personal loans has been improving, with banks offering lower interest rates. Average advertised rates for a £7,500 loan over five years have fallen to 5.71% — a 16-month low — according to the comparison website moneysupermarket.com. In January, rates averaged 10.16% for the same sum. The lowest now is 4.3% from Hitachi Finance, borrowing £7,500 over three years, says Moneysupermarket.
But very few applicants are being offered the advertised rates, and complaints against banks have risen sharply.
A study by the broker Freedom Finance found that two-thirds of those turned down for the advertised rate were in full-time employment and a third were earning more than £30,000 a year. Almost two-thirds were aged over 40.