Loan approved by Santander but rate too high - what are my options?

cristobalito

Hi all,

First time poster and grateful for any advice that you can offer.

At the weekend I applied for a 20k loan from Santander - their advertised rate was 9.9%, obviously depending on circumstances. I am a Santander customer, both personally and for our joint household a\c with partner.

The reason for the loan was to consolidate an existing Barclays loan (~7k @ 15.9%), OD (1k), CC (1k) and as a short term loan to part-finance our wedding in March. My plan was to apply now, in the hope that if loan was rejected that I'd wait 3mths (to lessen the hit due to the application on credit rating) and apply again (probably just for wedding). My income is close to 50k per year all-in. I'd regard my credit history as decent over the last 4-5 years - maybe one late payment iirc from my last credit report.

Anyways, the loan application was approved, but the APR was 15.9% which I'm pretty disappointed with. I appreciate (from reading other posts) that the bank has no guarantee that I'd consolidate and figure this has some bearing on the rate, which is fair enough.

Anyhow, I was wondering what to do - given I think the rate is high (although same as my existing rate)

• Accept the loan. Better a guaranteed loan now than worrying in a few months.
  • Pay off as much of the wedding part after the wedding and essentially carry on as if I was still with the current loan (as it's same APR).
  • Perhaps a little later, apply for a much smaller amount?
• Reject the loan. I'm seriously considering taking my business from Santander over this, but obviously Barclays have given same rate in past.
  • Can \ should I apply immediately to another lender or is it better to wait a few months?
  • Should I go to Barclays and see what they can do for me?

Ta in advance for any advice.


Chris

creditcardhelp11

Given your circumstances that is not an excessive APR. You will have debts of more than 50% your income (no guarantee you'll pay back existing debt) and with a missed payment I think 15.9% reflects your risk.

Emmzi

I wouldn't be posting on this board about borrowing £11k for a wedding. Brace yourself.

On 50K you *should* be able to blitz the o/d and c/c in 6 months max. And the loan rate is no better than what you have now, so no point switching and paying settlement fees etc.

Personally I'd sit tight and think about the max I really needed for a wedding. If that is in March and you are applying for credit again in 3 months time you're cutting it fine though aren't you?

cristobalito

cchelp11\emmzi,

Thanks for the advice guys - much appreciated. I am braced for the "wedding" backlash, but it's the reality of the situation and I don't see the point in lying.

We've already got a similar amount saved for the wedding and we're just being a bit on the cautious side, so the hope is we'd be paying back a serious chunk of that shortly afterwards.

Chris

Wutang_2

£11 grand to co-pay for a wedding?????? Are you mad?...I mean, congratulations - money well spent!!

KingElvis

More sound financial sense being displayed here.......Happy Christmas

Jeff_Bridges_hair

Hmm, applying for personal finance in your own name for a wedding is never a good idea.

You are better off just paying off your existing debts first - cancelling your OD in doing so and then see if Barclays will allow you to overpay on the loan.

Dont borrow for your wedding - thats a very silly thing to do.

Bravehearted_2

Don't mean to be harsh since I don't know you, but have you seen the countless divorcees-to-be coming on here asking about how to get out of paying for money they both borrowed? "Took it out in his/her name - do I have to pay?"

You're swimming in debt and have missed a payment in the past - you've got the rate you deserve.

Don't take on more debt especially to splash it all on a one day shindig. Holy Batman 11k!!! - All in your name! I know your partner promises she'll pay half now - but wait.

cristobalito

Fair points guys and certainly food for thought.

Fiddlestick

Emmzi wrote: »

I wouldn't be posting on this board about borrowing £11k for a wedding. Brace yourself.

We're doing ours for 2,000 tops...

Fiddlestick

Bravehearted wrote: »

Don't take on more debt especially to splash it all on a one day shindig. Holy Batman 11k!!! - All in your name! I know your partner promises she'll pay half now - but wait.

They said they already had a similar amount saved, so surely that makes it 22k?