Advertised Loan Rate

BlueMist_2

I am 22 and looking to purchase a new car, price £13500. Also I wish to pay off a high interest loan that I took out when I was 19, with a settlement figure of £3428.10.

I have a healthy current account, and no credit cards, and standard outgoings such as board(live with parents), mobile, insurance. Have always paid my bills, an currently earn £16k.

I wish to take out a personal loan of £17k, for my car and to pay off expensive loan, but wondered if people in similar credit situation as me have got the advertised rates of Tesco 8.3%, A&L (Santander) 8.7%?

I don't want to apply and get rubbish rate, then go elsewhere and get loads of applications on my credit checks.

Thanks Luke

iolanthe07

I seriously doubt whether you would get a loan from a reputable lender of an amount that exceeded your gross annual income. To borrow £17k when your gross annual income is only £16k is madness. You can get a perfectly decent car for much less than £13.5K.

BlueMist_2

iolanthe07 wrote: »

I seriously doubt whether you would get a loan from a reputable lender of an amount that exceeded your gross annual income. To borrow £17k when your gross annual income is only £16k is madness. You can get a perfectly decent car for much less than £13.5K.

I am looking for terms of 5 years.

My current bank have offered 11.9%, which would be instantly transferred, which are also the bank that I took the high interest loan out with 3 years ago. So I think it can be beaten.

CLAPTON

living at home and having few bills is wonderful way to save up some money
-to move out of home
-go round the world
-deposit for a property
-or whatever


I'm totally shocked that any high street bank would offer you such a huge sum of money on your earnings; suppose you lose your job, moving with a boy/girl friend etc you will be burdened with these repayment of 5 years.. you will be 27 then.

car for 1-2k

save first then spend

yorkshire-lad

i agree with clapton.
im 22, at home, and still paying a loan off from when i was 19 to buy my second car(3k to go) then was stupid enough to get another car (replacing the other btw) on finance for another 5k, having these debts has absolute crippled me.

i want to travel and start saving to move out in a place of my own, but these two loans eat away at my pay(and my income is higher)

a loan for 17k plus interest over 5 years, will be a high figure a month, i would sit down and have a think.

all the above comes from experience:(.

BlueMist_2

yorkshire-lad wrote: »

i agree with clapton.
im 22, at home, and still paying a loan off from when i was 19 to buy my second car(3k to go) then was stupid enough to get another car (replacing the other btw) on finance for another 5k, having these debts has absolute crippled me.

i want to travel and start saving to move out in a place of my own, but these two loans eat away at my pay(and my income is higher)

a loan for 17k plus interest over 5 years, will be a high figure a month, i would sit down and have a think.

all the above comes from experience:(.

Thanks for your feedback, anyone got any feedback on rates quoted on site are ones that are actually offered?

The payments are more than feasible (at advertised rates), and I expect a step up the ladder within 5 months, increasing my salary.

CHR15

BlueMist wrote: »

anyone got any feedback on rates quoted on site are ones that are actually offered?
.

The answers are already in the replies, I think you only want to read what you want to hear.

It is HIGHLY improbable any lender is going to lend you more than your annual salary, certainly not at a good rate in any case. This has disaster written all over it.

There are many many posters on here who insisted on that flash new car, paying for the £15-20k loan out of all that disposable income (what with living at home and hardly any outgoings it's a cinch right??)

Fast forward a couple of years and things are far from pretty.

I doubt you will take any notice though, go for it, get the nice BMW..... see you in the DFW board in a couple of years complaining about how the loan company were irresponsible.

[Deleted User]

BlueMist wrote: »

Thanks for your feedback, anyone got any feedback on rates quoted on site are ones that are actually offered?

The payments are more than feasible (at advertised rates), and I expect a step up the ladder within 5 months, increasing my salary.

you are extremely unlikely to get anything near the advertised rate even if they offered to lend you anything near 17k.expect to pay min 13.9% and be offered max 8k

SimbaSimon

BlueMist wrote: »

I am 22 and looking to purchase a new car, price £13500. Also I wish to pay off a high interest loan that I took out when I was 19, with a settlement figure of £3428.10.

I have a healthy current account, and no credit cards, and standard outgoings such as board(live with parents), mobile, insurance. Have always paid my bills, an currently earn £16k.

I wish to take out a personal loan of £17k, for my car and to pay off expensive loan, but wondered if people in similar credit situation as me have got the advertised rates of Tesco 8.3%, A&L (Santander) 8.7%?

I don't want to apply and get rubbish rate, then go elsewhere and get loads of applications on my credit checks.

Thanks Luke

It wouldn't surprise me if you were turned down for a loan of 17k. With a loan of 17k plus a loan of ???? your total borrowed amount before you paid off the other loan would be over 20k, which is more than your total annual income.

I'd recommend asking yourself a) Is a new car necessary? and b) Whats wrong with the current car? If you do need to change your car I suggest looking at cheaper second hand models for 1-2k but chances are your current car will be fine for several years to come.

BlueMist_2

SimbaK2K wrote: »

It wouldn't surprise me if you were turned down for a loan of 17k. With a loan of 17k plus a loan of ???? your total borrowed amount before you paid off the other loan would be over 20k, which is more than your total annual income.

I'd recommend asking yourself a) Is a new car necessary? and b) Whats wrong with the current car? If you do need to change your car I suggest looking at cheaper second hand models for 1-2k but chances are your current car will be fine for several years to come.

The car is 13.5k loan settlement at 3.4K, hence 17k to combine the both.

Car is costing me more each month, and frankly could do without the hassle and increasing expenses.

CHR15

BlueMist wrote: »

The car is 13.5k loan settlement at 3.4K, hence 17k to combine the both.

Car is costing me more each month, and frankly could do without the hassle and increasing expenses.

Getting a £17k loan will see your outgoings plummet I'm sure!!

You'll be left with bundles left over each month.