Northern Rock loan - opinions?

youngandreckless

Hi All,

I currently have a loan with cahoot (fixed rate 5.8%) but it doesn't let you make over payments which I'd like to do. I went on moneysupermarket earlier and noticed that northern rock do a fixed rate loan for 5.6% no early repayment fee and you can make overpayments. I've looked for a catch but can't seem to find one - anyone got this loan? are they ok? I'd be grateful of info/opinions.

Y&R

linds

youngandreckless wrote:

Hi All,

I currently have a loan with cahoot (fixed rate 5.8%) but it doesn't let you make over payments which I'd like to do. I went on moneysupermarket earlier and noticed that northern rock do a fixed rate loan for 5.6% no early repayment fee and you can make overpayments. I've looked for a catch but can't seem to find one - anyone got this loan? are they ok? I'd be grateful of info/opinions.

Y&R

i have a fixed rate loan with NR and a Mortgage with them and i think they are great.
I can also make overpayments although haven't done yet. There customer service is great and are always very helpful if you have any queries. There interest rates are always good mine at the time was 8.9% for a 13,000 loan and only pay 205.00 a month. Which i think is good.
Hope this helps...

jonesMUFCforever

You may find it difficult to beat what you have got. Just because somebody quotes an APR rate doesn't mean that you will get it.
If they won't accept overpayments why not stick what you can afford into a top rate savings account so that you will be in a position to pay it all off sooner than would be the original case.

donfanatico

Yeah, Northern Rock claim to offer "typically" 5.6% but i got quoted 9.9% on a 10 grand loan which I though I will pay off my 8.9%, had I gotten the 5.6%. I also told them that I wil use this money to pay off my more expensive loan which would have left me with only this load at 250£ a month, £100 less than now.

What does typical mean? I got a good credit rating earn a decent salary and never fell short of any payment I had on any loan or CC.

I don't understand... whats the catch there?

Rafter

donfanatico,

The 'typical' APR has to be offered to at least 67% of applicants who are accepted for a loan.

The bank has to do a juggling act to make sure they accept the right mix of customers at the right rate to achieve this. There is some evidence that banks cherry pick customers who go for the payment protection insurance first - as they make much more money from these.

Sometimes it is a catch 22 when you are trying to refinance. Because it looks like you have a lot of credit already, and the bank has no guarantee that you will pay off the existing loan, your 'score' gets marked down, even if you are managing your existing debt fine.

R.

mattgod69

Hi, I applied for a £10k loan with Northern Rock. I was quoted a rate of 6.9% even though I have a perfect credit score (as far as I am aware) and am also a customer of theirs. I have a good job with a good salary and actually have the money available, but I wanted to borrow some rather than spend the hard earned savings! I a very suspicious whether there are actually many customers getting the typical 5.6% and I would be amazed if there are two thirds! It would be interesting to know if anyone has been quoted 5.6%....

Catch_A_Fire

mattgod69 wrote:

Hi, I applied for a £10k loan with Northern Rock. I was quoted a rate of 6.9% even though I have a perfect credit score (as far as I am aware) and am also a customer of theirs. I have a good job with a good salary and actually have the money available, but I wanted to borrow some rather than spend the hard earned savings! I a very suspicious whether there are actually many customers getting the typical 5.6% and I would be amazed if there are two thirds! It would be interesting to know if anyone has been quoted 5.6%....

As Rafter says, two thirds of accepted applications must BY LAW be offered the advertised "typical APR". There is no bank in the country cavalier enough to fall foul of this rule.

Your "perfect credit score" may not fit Northern Rock's criteria for typical rates, all lenders use their own bespoke credit scoring and hence you may qualify for 5.6% with one lender but only 10.9% with another. It all depends on how important the lender views various criteria. One lender may be particularly keen on homeowners or older applicants whereas another may be more concerned about 100% prompt, full payment history.

Ayeshalush

I currently have a NR loan and have had another 2 in the past and have always been offered the advertised rates.

I would recommend them - have had no trouble at all and am about to start making regular overpayments. One thing I would warn you about is the heavy handed 'persuasion' to take the PPI - just don't give in to them they will accept NO in the end a slong as you sign the disclaimer sent out to you.

donfanatico

Thanks for the advice Rafter. I personally think that they possibly cherry pick customers on who is likely to opt for the PPI as they make more money from that than the actual APR% as it were. How long after this do you recommend applyning for another loan with the same/different lender?

donfanatico

Another thing, will they blackmark me now that I refused to sign that online application of 9.9%?