Apr not wot it seems

zico766

When i recently went to nat building society to see about a possible loan. It screamed at me the attractive rate of 7.5apr however upon finding out if they would loan me there money i was scrutinised with various q's and a's
too find they would only lend me at 11.5 ish .i asked the reason for differential rate and they told me its the rating i scored through the q&a .i would really like to know what you must be to get advertising rate of 7.5 when i have savings and mortg with them and have made ov paym's for 5yrs now .is this really just a gimmick rate to entice people in knowing they wont really offer anywhere near the rate .:(

Tixy

The advertised rate is the typical APR and has to be the rate offered to 2/3 of people who are accepted for the product.
You must be in the category that they will accept for the product but only at a higher APR. Perhaps you don't fit the profile of their target customer, perhaps there is some other reason they have given you a higher APR, difficult to speculate just on the info you have given.

zico766

Like i say 5yr of over payments on mortg an isa of few grand and i'm not quite perfect customer .i think they are taking the michael.no other outstanding debt .

iolanthe07

It could be to do with your debt to income ratio - difficult to say on the information you have given. They are not obliged to give every successful applicant the headline APR.

Percy1983

Sometimes being in too good shape makes you not an ideal customer.

Tixy

Percy1983 wrote: »

Sometimes being in too good shape makes you not an ideal customer.

Thats right. Or the fact that you already have products with them means you are not in their target customer group.
Ideally by having these very low headline rates they want to attract new customers, who might then get a credit card, current account and mortgage with them, thus making them a lot of money in the long run.

jonesMUFCforever

Perhaps they misread the text speak as it where on your application LOL