Santander loan 7.8% application; agreement 15.8%!

litkid_2000

Hi

I applied for a Santander loan on Friday via moneysupermarket at a rate of 7.8%. I was accepted for this loan and it was confirmed to me yesterday on the telephone.

I have since received the paperwork and it details the APR at 15.8%! Not what I signed up for!

Is this an admin error or have they changed my APR? Seems strange- I settled a Santander loan (which I got at 7.7%) a month ago and was offered another loan at the time of settlement at 8.8%.

Tubbss

Hi

Most places adverise a typical APR and the actual rate people qualify for varies. Did the sales person confirm the rate that you have qualified for when you spoke to them on the phone?

"I have since received the paperwork and it details the APR at 15.8%! Not what I signed up for!"- as you have not signed anything yet try elsewhere!

litkid_2000

Tubbss wrote: »

Hi

Most places adverise a typical APR and the actual rate people qualify for varies. Did the sales person confirm the rate that you have qualified for when you spoke to them on the phone?

"I have since received the paperwork and it details the APR at 15.8%! Not what I signed up for!"- as you have not signed anything yet try elsewhere!

Yep, already ripped up the agreement. Won't be signing that. Just seems strange how the rate has jumped, especially since I was offered a much lower rate only weeks ago.. Will give them a call tomorrow to see what the script is.

Fiddlestick

litkid_2000 wrote: »

Yep, already ripped up the agreement. Won't be signing that. Just seems strange how the rate has jumped, especially since I was offered a much lower rate only weeks ago.. Will give them a call tomorrow to see what the script is.

You weren't "offered" the lower rate.

They advertised a TYPICAL rate which is subject to status.

They assessed your status and priced your APR based on your likely risk to the lender.

Nothing dodgy here at all, just good lending practice.

litkid_2000

Fiddlestick wrote: »

You weren't "offered" the lower rate.

They advertised a TYPICAL rate which is subject to status.

They assessed your status and priced your APR based on your likely risk to the lender.

Nothing dodgy here at all, just good lending practice.

Uncessessary prudent practice if you ask me. I have a flawless credit history and it seems bizarre that the loan APR was sky high. I have over £1000 of disposable income per month remaining after mortgage, bills etc.

I called Santander this morning and they explained that they cannot do anything about it because it was the underwriters' decision. I did have a quote for a Santander loan a few weeks ago after I paid off my existing loan (as detailed above) but I said no because the APR was 8.9% (previous loan was 7.7%). Also just had mortgage approved. Santander explained that these factors will all have an effect on my credit rating.

They also said that each loan application will affect my credit score- how on earth can you 'shop around' for the best rate when each time you apply your credit rating will be affected? Seems strange because I am only being sensible in shopping around to fins something that is affordable - i.e. not subscribing to a high interest rate.

Practially speaking, I want a loan for a car and would like it soon. I have 'applied' for two loans (the 15.9% loan and 8.9% loan, both with Santander) in past month and I (me) rejected the two loan offers because I was not happy with the APR. I have also had a £90k joint mortgage approved in past two months. Where can I go for a loan of £9k repaid over 36 months at a rate of less than 10%? I can easilly afford the repayments, having over £1000 remaining each month after bills and living costrs.

Thanks

Malky

As you're unhappy with the APR's you've been offered, how about buying a cheap runaround then saving up for 9 months or a year. That way you're APR will be 0%

litkid_2000

Malky wrote: »

As you're unhappy with the APR's you've been offered, how about buying a cheap runaround then saving up for 9 months or a year. That way you're APR will be 0%

Because I don't want a runaround.

Any suggestions on where I can get a competitive APR?

BenL

Sainsburys then tesco seem the next 2.

https://www.moneysupermarket.com

immoral_angeluk

You may think you have a flawless credit history but there may be something they've picked up on which you may not have even thought about which meant they deemed you higher risk and so gave you a higher rate..

If your credit rating is fantastic, then maybe they didn't think they'd make enough money out of you by giving you a cheap rate..

kerri_gt

If these are the APRs you are being offered, I guess you are left with the question 'just how badly do you want a £9k car?' Choice is yours it seems, pay the addtional interest to get the car you want now, save up and wait, or buy something cheaper. Do you physically NEED a new car right at this minute?

iolanthe07

They also said that each loan application will affect my credit score-

This does seem bizarre, when you are only trying to shop around for the best deal, but too many applications make lenders think you may be desperate. Perverse, but there it is.