large, low-interest loan wanted!

sarah_silver

I took out a 24k Northern Roack loan earlier this year to pay off all my existing loans and credit cards. they offered me 10.8% so b4 signing the forms I applied for a loan with egg, but they turned me down, saying it was because i was still on probation in my new job. So I took the loan.

I would really like to find a loan with a better rate of interest, but will i get turned down because of the 24k loan i already have? (salary only 22k) don't want too many refusals...

Also, on top of loan I have five credit cards which I am using to rotate a debt of about 3k interest-free.

Debt_Free_Chick

I think you are going to find this very difficult.

When you apply for a new loan, the lender will search your credit file and see that you already have £27k debt. They will think you want to increase your debt to £41k, by borrowing a further £24k. On a salary of £22k, they are not going to go there.

The rate offered by NR reflects, in part, your credit record as they tailor rate depending on the applicant. You could try rearranging your existing loan with them, but I see few options. Sorry not to be more helpful.

MarkyMarkD

£27k + £24k is £51k actually, DFC.

But I agree with your point to the extent that lenders are rational - and that's a moot point.

ffs

Am I the only person surprised that Northern Rock agreed a £24k loan on a salary of £22k? Is it a secured loan? Over what term?

Is this just another example of the very succesful marketing of consolidation loans?

Good luck and sorry not to have made any constructive suggestions.

Fatboy_NSS

It shouldn't be a problem getting a consolidation loan. However the lender would probably include in the agreement that the existing loan would have to be paid off with the settlement from the new loan, so your overall borrowing would not increase.

deemy2004

Am I the only person surprised that Northern Rock agreed a £24k loan on a salary of £22k? Is it a secured loan? Over what term?

Is this just another example of the very succesful marketing of consolidation loans?

Good luck and sorry not to have made any constructive suggestions.

Its probably a 10 year loan with repayments at £400 per month.

jellyhead

does your existing loan have early redemption penalties? i'd double check, my sister got really stung on her loan, she'd been told there weren't penalties and she only took it out because she expected to remortgage within a year and pay that particular loan off early. in the small print there were very large penalties and she ended up being hammered.

this wasn't northern rock by the way.

i've been looking around recently and we're taking a 6.9% loan (of 15 thousand) from marbles, but they only do 7 year terms, not ten year.