Requesting lower interest rate?

ClaretGeoff

Finally decided to take control of my money. First step - Loan
Last year, (when I was very naive) I took out a loan of £7300 through my bank - Barclays. It was pre-approved and to replace an existing loan. At the time I was in a real mess.
I've looked into the loan and the interest rate is 19.9% - this seems very high, and interest rates were never discussed at the purchase of the loan.
I know I've signed it and haven't a leg to stand on (probably), but would there be any merit in contacting my bank to request they lower the interest rate. I haven't any CCJ's or defaults previously so this seems extortionate compared with their advertised rate, and other high street bank rates. I presumed at the time that it was the advertised rate. ANy ideas/experience? Thanks!

maforduk

I wouldn't mind knowing either as mine was a pre-approved loan from Barclays too.

skanger

I would say there's no harm in asking

I expect the outcome would either be:-

No go away or
Yes, but you will have to take out a new loan at a lower rate which will repay the old one. In which case you will need to calculate based on the remaining term, and the interest etc due, if doing this will make you any better off.

HTH

ClaretGeoff

Hi maforduk,
Just wondering if they discussed the interest rate with you when you took out the loan also.
basically i'm paying £236 a month over 5 years, when most loan calculators have me on about £180 over 3 or 4 years. My credit card has a lower rate than my loan.

maforduk

ClaretGeoff wrote:

Hi maforduk,
Just wondering if they discussed the interest rate with you when you took out the loan also.
basically i'm paying £236 a month over 5 years, when most loan calculators have me on about £180 over 3 or 4 years. My credit card has a lower rate than my loan.

I don't think they did online, but on the paper work they did but it never clicked that it was high!

Something to watch out for in future.