Shocked by Northern Rock !

Lizzy

I have copies of my credit report and they are not too bad. Just the odd status 1 dotted here and there. Same with hubbys credit report too.

My credit score according to Equifax is good to excellent. I checked out the loans on here and plumped for Northern Rock with a low rate.
I was shocked to find I had been accepted this morning with a rate of 10.9% I can't believe it !!!!!!

Of course I won't be taking it.............

The reason for the loan was that I had a Cahoot Flexible Loan that had stated off at a very very low rate and has slowly crept up to 9.1% so I now know flexibles are not a good idea. I was just going to apply for another but I want one where the rate is the same for everyone.

Anybody else had this problem with Northern Rock ????

Lizzy

pj_uno

Hi Lizzie

Yes, I have had the same problem with Northern Rock infact it happened just today!

Had an appointment this afternoon in their Leeds branch, went through the usual questions with an adviser, then computer said no!!!

I have never been refused credit in the past so this came as a shock. I always thought I would have a good credit history, always pay cc cards on time, past loans been paid on time and sometimes early, etc etc. The adviser told me I may have had a 'too good' credit history whatever this means. Surely they want people who will repay their money? (But then again there aren't going to get many late / missed payment fees from me which is probably where their profits lie).

Anyway I'm going to try the AA next, think it is 5.8% at the minute (I think I can cope with the extra 0.1%).

Cheers

PJ

trinnylilac

Exactly the same happened to me a few weeks ago .. Needless to say I told them where to go ,

My credit rating is excellent so I could not understand why the rate was so high... I am starting to think that that because I have paid loans off early with them in the past they obviously think they won't make enough money out of me... I had a huge mortgage with them also, transfered a few moths ago to Nationwide.
Anyway wouldn't go with them again out of principle...

Lizzy

Well I don't feel so bad now. Pj uno is the AA a fixed rate for everyone not the typical one that can obviously rise to infinity ?

Phantom_Flan_Flinger

trinnylilac wrote:

I am starting to think that that because I have paid loans off early with them in the past they obviously think they won't make enough money out of me... I had a huge mortgage with them also

Definately not the case, as I'm on my 3rd loan with NR.

I paid both previous loans off early and on my recent application, I was offered the 5.7%.

I don't and haven't had a NR mortgage though.

is the AA a fixed rate for everyone not the typical one that can obviously rise to infinity ?

From the AA website -

Is the interest rate fixed or variable?

The rate is fixed at the time of application, giving you the security of knowing your repayments will not change.

It also states that it's 5.8% typical, which to me says you might not be offered the best rate and it'll depend on how your credit score comes out.