Variable Interest Rate on secured loan

eliza143

Hi

Can anyone help me with understanding what is meant by "Variable Rate" on a secured loan.
I took out a secured loan with Picture Finance in panic at the time, I did not realise it was variable loan, I thought it was fixed. The monthly repayment has never changed.
Webb Solutions have now taken over this loan and I need to know if I can challenge the fact that they have never reduced my amount even though the interest rate is so low

Would really appreciate any help

Thank you so much

CHR15

You should be celebrating the fact that it has never increased, I find that remarkable.

Search out some First Plus or Cahoot Variable loans on here to see how your APR could have gone from 6.5 to 20.5% in just a few Months.

Are you sure your APR has remained constant over this time or just your repayments have remained the same.

It could be a case that the APR has gone down but your repayments remained the same, this would reduce the term of your loan (because you are paying more off each Month).

It could also be a case that the APR went up which meant you were paying less of the capital thus increasing the term of the loan.

Be sure of what you are complaining about but from what you have said, you should be happy.

eliza143

Chris

Thanks for your curt reply.

I have little understanding of variable rates. I am talking about my monthly payments which have never gone down, and I thought with interest rates so low this would reflect on my payments

If this is not so please just advise of that and dont make me feel that I am idiot because I do not know these things

Thanks anyway

Peelerfart

curt adj, short;rude;abrupt.

Hardly eliza143.

I would have thought something like "Thanks Chr15 I'll check up and post back"
would have been more appropriate but hey,that's just me!

CHR15

Depends if your agreement states the APR of the variable loan is tracking anything.

As in the First Plus and Cahoot posts, the rates were rocketing at the same time as the Base Rate dropping through the floor.
The end result was that those companies never stated that the APR would track the base rate, instead they tracked some imaginary self constructed rates which remian totally secret.

Basically there was nothing to complain about in accordance with the Terms and Conditions of the loan agreement.

It should be in your agreement. It is of no use looking at their current terms as they would most likely have changed isgnificantly since you took your loan out.

I still think for your payments to have remained the same, is a bit of a blessing, even more so as Picture Finance are not top of anyones list of good lenders.

CHR15

Peelerfart wrote: »

I would have thought something like "Thanks Chr15 I'll check up and post back"
would have been more appropriate but hey,that's just me!

Puzzled me too but hey ho...

opinions4u

eliza143 wrote: »

Chris

Thanks for your curt reply.

I have little understanding of variable rates. I am talking about my monthly payments which have never gone down, and I thought with interest rates so low this would reflect on my payments

If this is not so please just advise of that and dont make me feel that I am idiot because I do not know these things

Thanks anyway

You ungrateful cow!

Apples2

eliza143 wrote: »

If this is not so please just advise of that and dont make me feel that I am idiot because I do not know these things

Christ on a bike, people are helping you but you throw it back in their face!

Clearly an idiot!

ILW

I thought the reply was measured, informative and polite. Really cannot see what the problem is.

~Brock~

A lack of understanding and an inability to listen usually go hand in hand........