Unsecured loan for £25k?

imalrightjack

I got the first loan I went for

However, I've since found a slightly better rate. If I apply for the better rate now, will it affect the application of the one already accepted?

somethingcorporate

With the same bank do you mean?

Just give them a call and ask if they can move you to the lower rate... we did this recently with our new mortgage provider as they kept dropping the rate. As they had already done the credit check it prevented further footprints going on our credit file (which can harm future applications).

imalrightjack

No, a different bank.

somethingcorporate

Then the fact you've had a search already may mean another one so soon would increase the chances of you being declined.

However, to get the multiple loan plan to work don't you need multiple loans? which means some are bound to be on higher rates than others!

If that's the path you decide to take then apply with caution - too many applications in a short period of time looks like desperation. 2-3 should be fine though.

Good luck!

imalrightjack

I got the full £25k accepted - I was going to apply elsewhere to see if I can get the better interest rate.

somethingcorporate

Well done then!

I'd suggest there's no harm in trying one more!

jamesd

imalrightjack, which lender? It's nice to know which ones will consider this situation.

fozmcfc wrote: »

My calculation was on a £25,000 loan + the interest, I assume you actually mean take a £20,000 loan and with the interest it would be £25,000

That's an odd assumption. You don't add the interest to the amount borrowed, borrow £20,000 and £20,000 is all your borrowing is. Some lenders will give statements for the whole amount due in repayments until the end of the loan but that hasn't increased the debt or interest at all, it just tells you how much you'll pay in total.

fozmcfc wrote: »

Even if a lender did borrow you £25,000 and you paid back the £20,000 with it, you still would have a debt of around £30,000. Surely you must see that that is a huge amount unsecured.

There are some great people here who give sound/solid advise, but unless you earn at least 3 times that amount, you really stand no chance, even if they are pointing it out to you in a straight to the point way.

On the income here borrowing £25k is easily affordable, only £535 a month to repay over five years at 10.9%. £811 over three years is likely to be lower payment than the existing cards and could also be easily affordable. On the sort of income given here I could handle that and still be saving well over £1,000 a month - lifestyle is a huge factor. For someone with an expensive mortgage, expensive car and expensive family it could be impossible to handle without dealing with those other costs in some way.

imalrightjack

It was accepted by Co-op. Just hope nothing goes wrong.

jamesd

Thanks. Should be fine, but please do let us know if there are any hiccups.

imalrightjack

theartfullodger wrote: »

50quidonRED mentioned WONGA....

PS Fascinating posts above: The postee's name often tells you so much about their attitude/self-image... "imalrightjack"....

Meaning? It comes from a song...