HSBC loans again...

douche_2

I recently applied to HSBC for a loan for £13k to refinance my existing borrowing. I have never missed a payment to a creditor, no CCJ's, HSBC customer for 15+ years, electoral roll, £27k PA etc - probably 'average' credit rating. I've applied as I'm in the middle of a 4 year pay freeze and have little chance of contributing more towards the monthly repayments so wanted something more consistent.

They had a rate of 6.2%, but as an existing customer who previously had a loan at 7.9% I thought I might get a reasonable rate. They agreed they would take into account it wasn't additional borrowing and that I would have to close any credit accounts following the loan application.

They've come back with a rate of 15.9% which, to be honest, when I compare it to the existing credit, the benefits aren't any better. It costs the same as the existing credit and only shaves a bit of interest.

I feel as if I've been backed into a corner here as they know I'm damned if I do and damned if I don't. Anyone else in the same situation? Advice?

Tixy

Worth appealing as you have done - they may drop it a % of so. But are unlikely to drop it much further than that and may not do at all.

If they won't improve and it doesn't work out cheaper than your existing debts (or not much cheaper but loses flexibility) then I'd probably advise not continuing with the application.

Then to look at alternative e.g if the current debt is in various accounts could you move some of it to a cheaper rate (perhaps a credit card balance you could consider trying to obtain a new promotional balance card for).