Northern Rock loan with Ins.

givemeabreak_2

I have been approved for a £20,000 loan with Northern Rock at 5.7%, :j £217.85 + Bronze loan protect £20.65 per month for 10 years, (I intend to get Life ins. cheaper elsewhere)
I now have to sign the forms & return them.
Should I accept the the loan with insurance and then cancel the the loan protect within 30 days or just not tick the box for the insurance, if I do the latter will I still get the £20,000 at 5.7%
It does not state on the application that the offer is related to me taking the insurance.
I am thinking of ringing them tomorrow to ask but would like to hear if anyone has done this and would appreciate any advice, Thankyou in advance.:beer:

dld2s

I took a loan with NR several months ago, the rate I got was with or without taking the insurance (5.9 I think it was at the time) I believe the rate you get with NR is dependant on your credit rating and nothing to do with taking out their insurance, so if they ave offered you 5.7 that's what you'll get

hope this helps

dings

Giveme... slightly personal question, so please feel free to tell me where to go...

What roughly is your salary? I'm considering a loan of a fraction more than that (not from NR), and am on £33k. My only worry is that amount - but affordability is not a problem

Cheers

Dings

givemeabreak_2

Hi, I only work part time and earn £8500 top line although they did ask about other earnings, I have a rented property but not sure if they took this into account, they have only asked to see my last three pay slips. I have been on other sites and they have said i could borrow about £32000 on my earnings. Roughly, annual earnings before tax x 3, hope this helps.

Astaroth

If you intend to go down the cancel the insurance route you need to make sure beforehand how easy this is to do. In some cases the PPI is a built in part of the loan and so to cancel it means having to cancel the whole loan and apply for another - obviously you are entitled to do it but can be a pain esp as you arent assured of either being accepted or getting the same rates

ladymacbeth_uk

Hi Giveme... I too have just applied for a loan with NR - I applied online for £7000 on Tuesday lunchtime. How soon did you get a response?
I too took out bronze loan protect but this worked out at about 3.75 per month over 3 years. I thought this was a good price, so I'm planning to just keep this - as per Martin's advice he said NR was a good one-stop shop for those wishing to buy both at once. Yours does seem a bit high at £20 odd per month however.

givemeabreak_2

Hi LadyMcB, I applied online last Thurs and rcvd forms on Tues.

givemeabreak_2

Hi Astaroth,
It states the PPI can be cancelled within 30 days after application has been approved, so can't see how this will affect my loan application, am sending forms back declining the PPI.
Will "post" if my application is altered by NR.

givemeabreak_2

Have rang NR and told them I do not need PPI on my loan, a very nice lady told me my rate will stay at 5.7% and will send out new forms asap. Looks like its going to be good result. Fingers crossed ........I was told the rate depends on your credit score and loan amount.

ladymacbeth_uk

Received letter today - was turned down for loan!!! ( I currently rent and have only been with my company for 4 months - this may be why - annoying still! Just thought I'd let you all know.

PoundsLookAfterThemselves

ladymacbeth_uk wrote:

Received letter today - was turned down for loan!!! ( I currently rent and have only been with my company for 4 months - this may be why - annoying still! Just thought I'd let you all know.

Thanks, you just stopped me applying. I too have just started a new job of four months and rent (new address also 4 months) so I don't think I would have been approved.