| The UK banking system may be thought of by many | | | | The downside of this is that you will be dealing with a |
| as archaic, a bit Dickensian, and in many ways it is. But | | | | bank that does not know you. Dealing with your own |
| there are several ways of going about getting a UK | | | | bank may mean that you have a certain amount of |
| loan quote. Here is a summary of the main ways, and | | | | negotiating power, especially if you have a good credit |
| the pros and cons of each. | | | | record with them. In negotiating the loan quote with |
| Getting the UK loan quote from your own bank is the | | | | them you will not have the leveraging ability that you |
| most obvious way. After all, your bank will know you | | | | would normally have with your own bank. |
| because of your previous banking relationship. It may | | | | The next alternative is a broker. Rather than getting a |
| be that your bank is quite near to your or a short drive | | | | UK loan quote from a direct lender (i.e. a bank, which is |
| away. You may have set up a telephone banking | | | | lending you their own money directly) a broker will |
| system with them or even an online version of that. | | | | have access to several different lenders, for which he |
| The people there will know you, as long as staff | | | | or she gets a commission. This vastly increases the |
| turnover isn't too high. | | | | number of options available to the borrower. It also |
| The obviously bad side of this is that getting a UK loan | | | | massively improves the borrower's chances of getting |
| quote from your own bank means that you will be tied | | | | a loan in the first place, especially in the case of a bad |
| in to whatever conditions the bank has as far as its | | | | credit record. The bad side of this is lack of impartiality. |
| own lending is concerned. In particular, you will be | | | | You would never know how independent the broker is, |
| charged whatever prevailing interest rate the bank | | | | or whether or not the brokerage is tied to a specific |
| sees fit to charge. So rather than just nip into your | | | | group of lending companies. |
| own branch and smile at the people who know you it | | | | So the path that gives you the most flexibility is to go |
| would be a better proposition in the long term if you | | | | the whole way and deal with a large panel made up |
| were to look around for a better deal elsewhere, even | | | | of brokers and direct lenders. The borrower will have |
| if it took a bit of extra time and effort on your part. | | | | all the benefits of dealing with several brokerages that |
| So the next possibility is getting a UK loan quote from | | | | are both independent and tied. The chances of getting |
| someone else's bank. The high street banks are all in | | | | that loan will also be greatly increased in the cases |
| competition with one another, after all. They will try and | | | | where the borrower's credit history has not been |
| outbid each other as much as their own coffers can | | | | good. |
| afford. Look for the best deals going. Banks | | | | This last option will be even better as it is also the |
| nowadays are not the conservative institutions that | | | | easiest. Broker panels exist online. Borrowers can |
| they used to be, and you will see posters both outside | | | | apply for a UK loan quote easily just by filling in a |
| and inside their branch offices telling you specifically the | | | | simple online application form. So the UK lending |
| interest rates they charge. | | | | system isn't so archaic after all! |