santander loan help

[nomorespending]

Hi,
I curently have a loan with 9000 outstanding with lloyds at 15.1 %. I have applied for the cheap loan with Santander of 7.9 % to transfer this 9000 and get a cheaper rate.
They have agreed it instantly but when the letter came they have put 9.9 % interest.
It is obviously still better than lloyds but should i take it or apply elsewhere for a cheaper rate.
Also I want to over pay and I can't find anything about whether I can make over payments, it only contains info about early full settlement and the charges for that.

Can anyone advise about whther i can over pay and whether i should try elsewhere for a cheaper rate.
Thanks in advance!

[Tixy]

7.9% will be the advertised 'typical' APR but 9.9% doesn't seem bad for the amount of money involved.

Not sure about the overpayments, I'd have expected it to be in the paperwork, perhaps give them a ring tomorrow to ask about it.

[nomorespending]

thanks - i'll give them a call in the morning!
x

[Surfman]

When you ring them ask them to review the interest rate they have offered you and be willing to provide evidence of your income in the form of payslips etc. Their APR is computer generated and assessed but they will reconsider offers they have made and get an underwriter to make the decision rather than a computer. I've just done this and got the 7.6 rate.

[nomorespending]

rang them and asked them about overpayments - its a definate no no. I have only just read the advice on asking for the lower rate - i will ring them tomorrow and see if they will.
Thanks surfman...

[Surfman]

Alternatively, take the 9.9 and make 3 months payments at that rate, then ask for the lowest rate, they have to consider your request after you have made 3 payments at your current rate.
Good luck.

[pressi]

I am taking a hire purchase loan with santander for 9.9% for 4 yrs.

Does anyone have any experience with how the paying off is calculated, apparently when coming the paying of is not just the remaining capital + interest upto that point of paying off there is something added it is not transparent in the documents. I am not sure if i am missing to read anything.

When i checked with the call centre people they provide me "Pay off balance value" for that day this is not straight forward, either i agree and pay off or continue until the end of the term.

[browneyedbazzi]

I had an absolute nightmare experience settling a personal loan with santander - they have a complicated computer generated method of working out settlement figures and it seems to get things wrong pretty often (as admitted by the csa I spoke to today when she was offering me compensation for all the hassle I've had to go through to get a correct settlement figure!).

The main thing to be aware of is that often when you ask them for a settlement the figure they quote + the value of payments you've already made will total more than the full original contract...if this happens don't accept the figure, query it and keep pushing. They'll say it's correct for a while and try it on, but eventually they'll have to admit that if you're paying a loan off a year or two early it shouldn't cost more than the value of the remaining payments even when you take into account the penalty interest they can charge. I've been assured today that it isn't done intentionally but it is a glitch in their computer system. The first line staff just take whatever number the computer spits out as gospel so if it happens you need to make a complaint and get your account referred up the chain to get it corrected.

Before you ask for a settlement figure have the total value of the contract to hand and work out exactly how much you have already paid and how much it will cost to make the remaining payments. That way if they give you one of the glitch settlement figures it should be pretty obvious right away.

Good luck!