Tesco Loan Question

fd1972uk

Hi all,

Newbie here and have decided to join up, it's a great place for information and guess it's no better place to ask any financial questions.

Question is that we took out a £17.5k (roughly) loan for 7 years with Tesco last year (we did have a previous loan with them and topped it up, now pay £285 per month.

It's interest is 9.63% and have noticed that Tesco are giving loans to existing customers and stuff, and whilst I saw their loans can start from 7.3% I think that maybe upto £15k. I tried looking at we had originally and it says the rate is 8.5% now.

I used the usual online calculators and the way that works out is that possibly I could lower my monthly costs to them. Could possibly get even a few quid and still be around the same level.

The question is will Tesco actually do this? Will they offer me the better rate and yet give me more money? Or would I maybe even be able to get them to give me the 8.5% on my current amount?

I know it could only amount to a £20 or £30 a month better off, but every penny counts as you all well know.

Many thanks in advance.



FD


p.s. I looked for an introduction/newbie thread but couldn't see one.

chalkie99

fd1972uk wrote: »

guess it's no better place to ask any financial questions.

Hi and welcome!

Yup it's a great place for questions - it's the answers that are usually the problem.

First problem is that you already have £17.5k debt (plus any other debts you haven't mentioned). Applying for a new loan would double your debt in the lenders view as they have no guarantee that you will actually pay off the existing loan with the new funds. You would need a whopping income to be able to get this level of credit.

Second problem is that the advertised rates are only available to a select band of customers and you probably won't get that advertised rate.

Thirdly, and perhaps most importantly, bearing in mind I have no idea of your circumstances (so no offence intended) but you say the £17.5k was a "top-up" of an existing loan and now you mention

Could possibly get even a few quid and still be around the same level.

This is a dangerous game to be playing. The board is full of people who have gone down this route only for it to end in tears. Please think carefully about your finances.

KingElvis

Give them a call and ask them?

Do you actually need any more money as you already seem to be in quite deep with them?

fd1972uk

Thanks for the super-quick response peeps.

The intention isn't to get a new loan on top of the one I have, it was to try and get the lower interest rate.

I was hoping to reduce the rate I have already on the current terms, was hoping that regardless I'd pay the 8.5% whether that'd be at my existing debt or if I'd need to re-negotiate keep the 8.5% and get a little extra (a little being whatever it takes to keep it at the existing amount I'm paying).

Guess it sounds too simplistic to actually work.

I will be giving them a call later today, but just wondering if anyone has had any similar incidents.


FD

dtsazza

fd1972uk wrote: »

I was hoping to reduce the rate I have already on the current terms, was hoping that regardless I'd pay the 8.5% whether that'd be at my existing debt or if I'd need to re-negotiate keep the 8.5% and get a little extra (a little being whatever it takes to keep it at the existing amount I'm paying).

If you do need to renegotiate - why on earth would you go to the trouble of securing a lower rate, i.e. cheaper cost of servicing the loan, and then throw it away by deliberately increasing your loan amount so that the amount you pay is the same?

Surely the whole point of this exercise is to reduce the amount you're paying to service debts, right?

In any case, it's worth calling them - they can only say no.

KingElvis

Don't even think of giving them a clue you may be having difficulty paying though or they'll pick up on that like a tramp on a kipper.

I know yu're not but they read all sorts of rubbish into phone calls.

fd1972uk

Thanks guys for the quick and helpful replies.

I ended up calling them back just there. I did manage to change some details that I wanted to do anyway, so not a wasted call.

Spoke to the guy who was helpful enough. As he said the low rate they show is just the 'best' one that can be available, however it changes with everyone's circumstances.

I'm pretty sure when I topped up before it was something similar but the actual apr was higher than what I had originally thought.

So I'll think I'll just leave everything as it is.


FD

blacksta

285 * 7 years = £27360 ( Poster are you aware of this figure over 7 years) - MY God their goes my future income

chalkie99

blacksta wrote: »

285 * 7 years = £27360 ( Poster are you aware of this figure over 7 years) - MY God their goes my future income

£23940 I believe?

blacksta

chalkie99 wrote: »

£23940 I believe?

Ok - My heart almost skipped a beat - Thanks

fd1972uk

blacksta wrote: »

285 * 7 years = £27360 ( Poster are you aware of this figure over 7 years) - MY God their goes my future income

I'll need to be aware of it, as that's what I'm paying (well the corrected figure) whether I like it or not.

I know I need to carry this for the next almost 6 years.

My question was trying to get a re-negotiation to get it lower, long shot which never came off.




FD