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Loan - Do you think this situation is strange?

skyeceilo
skyeceilo Posts: 93 Forumite
Part of the Furniture 10 Posts Combo Breaker
Hi all.
I really need to rant and rage about Norwich and Peterbourgh! Two weeks ago my partner and i applied for a £20,000 loan so we could have an extension done as we cant sell our house and we need a second bedroom by march.
We had to wait over a week before they told us that they declined us on affordablity. They decided we couldn't afford the £318 p/mth (8.9% for 7yrs) which we appealed against as we could prove that we could afford it. Today we got our answer. They decided that we can now afford the £20,000 loan at £345 p/mth (11.9% for 7yrs). How can this work out when one moment we can't afford £318 p/mth but now we can afford £345 p/mth? I told them to stick the loan where the sun don't shine.
Surely Norwich and Peterbrough have broken some kind of rule by being irresponsible about this loan by rejecting it for affordability to begin with and than offering it at a higher interest rate?
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APR Coupons = £10Cashback - £80 + £140CCV Freebies - baby book, seeds

Comments

  • Hell yeah totally strange.... you know why they did that dont you??? all a con to get more money out of you!!! well done on the shoving it where the sun dont shine....lol have a gander at my story see what you make of it im totally clueless on what to do but one person on here giving me some helpful advice
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    The higher rate reflects the increased risk they percieve you present.

    If you feel it's irresponsible then use another lender.
  • tictax
    tictax Posts: 157 Forumite
    Andy is spot on. The increase of £27 per month is pretty small in their opinion so this is to cover the higher risk that they are taking on.

    I wouldnt say this was irresponsible lending as £27 isn't that much money.
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