loan question

rgjjb3

i applied online for a personal loan of £6000 the other night at a rate of 8.7% monthly repayment of £122.
i was accepted.
i recieved the paperwork today and the detail is £138.
at 14.7%.
i just rang them and they said it is unclear online that even though you can get accepted it may be at a higher rate......i told them i wish to cancel my application then.
this was with santander who i have had several personal loans from over a 20 year period(previously with alliance and liecester).
im expecting mail or phone call asking then offering lower rate.

my question is can they do this?.
i am now going to apply with a different provider...any advice.
thank you

Consumerist

Loan rates are often advertised at a typical rate and only 2/3 of the loans granted need to be at their typical rate at the moment. The same applies to all banks, unfortunately.

Edit
Read more here.

Fiddlestick

rgjjb3 wrote: »

i just rang them and they said it is unclear online that even though you can get accepted it may be at a higher rate

Please link the URL in question.

I'm willing to bet that it does say that the APR is typical and not guaranteed.

my question is can they do this?.

Without seeing the page in question I cannot say, but so long as it states that the APR is *typical* then yes, they can do this.

rgjjb3

thank you for the replies.
i understand they advertise a "typical"rate in order to draw people in although i do feel that people are being ripped off.
my ignorance in understanding is that if i apply for a loan at X amount per month and then assesed as being a higher risk then why will that make me more able to afford a greater amount per month?.

anyhow this is the way of the world,i have applied online for a tesco loan now and im waiting for santander to cotact me and ask why i havnt returned the signed documents.....maybe after explaining i will get a better deal?(this has happened before).

rgjjb3

i dont want to be mis understood......the rate of 14.7% is competetive and for sub £7500 very good.
its just the fact that you apply online all good,then recieve the congratulations youve been accepted email....then recieve the paperwork with the bad news.
maybe it would be better practice to tell you in the email your accepted but due to circumstance a higher rate is applied.

rgjjb3

i recieved a letter today from tesco...they wont grant me a loan so i will sit it out to see if santander come up with a better deal.
will tesco decision go as a bad mark on my credit rating?

[Deleted User]

it will go as a search,and no santander wont offer you a better deal now

jonesMUFCforever

Two searches in a small period of time - the next one will be crucial - if you are declined I don't think a mainstream lender will touch for at least 6 months so take care - if need be grovel to Santander.

rgjjb3

thanks for that,all advice is appreciated.