Loan APR rate changes

Johnnyb_2

Hi,

I've just been approved for a loan for 16K with A+L - The rate is 16%. It was advertised at 9.9%.

I have an excellent credit rating and want to bring the APR down. Should I wait another 6 months until I've paid some of this loan back, or should i go ahead and look for a rate now?

When you apply for a loan you don't know the rate until the loans approved, therefore a search has already been registered against you, which is unfair for the consumer.

Any advice on what I should do?

Kind regards

Johnny B

marshallka

APR are worked out different by each lender so if you apply for other loans then again you will not know until you are approved.


What is a 'typical' APR?
Most lenders quote a "typical" APR in their advertising. This is the APR it will offer the majority of borrowers but not all. The typical APR will be offered to two-thirds (67%) of borrowers.

Somewhere in the small print you should find the phrase "APR subject to status", which essentially means that once the lender has looked at your actual circumstances you might not qualify for the typical APR.

The lender will assess your income, how much you can afford to repay, the relative security of your job, whether you're on the electoral roll and your credit history and will offer you an APR it feels is applicable to you.

If you don't fit a lender's ideal customer profile, the APR you are offered will typically be higher than the advertised rate.

Johnnyb_2

Hi, thanks for this,

Is it worth sticking with this or taking the risk and applying for another loan with another lender. I only have 3 searches against my name within the last 12 months. kind regards

CLAPTON

you must be very desperate to even consider paying 16%
whats the loan for?
can you not reduce the amount needed or even save up for whatever you need?

Johnnyb_2

Hi mate,

I was, i needed it to pay final payment on a property in Bulgaria and the mortgage I applied for was reduced from 75% to 60% LTV, it's been a nightmare, I'll pay it for 6 months and then move it. I think it's too risky to move at the moment. I don't want loads of searches, cheers