Shawbrook Bank

Craig_D

Hi all,

Just a quick note, I'm thinking about taking a secured loan out through Shawbrook Bank as they are offering a very competitive rate.
Has anyone taken out? had loans? any issues? good service etc?
As they are fairly new I'd like to know if anyone has anything I should be wary of.

Thanks very much

Tixy

I've not come across anyposts about them on this board - but that may well be because they only offered secured finance (I believe).

One thing potentially to be wary of (as with any secured loan)- is comparing variable rates with fixed rates you would get for unsecured products.

The rates quoted on their website don't seem all that competitive - at a comparison cost of 17.5% APR. Have you asked your existing mortgage lender for a quote for your further lending requirement?

Craig_D

17.5% does seem to be a bit steep especially as I got a comparison quote from this site and it gave me 9.3%?
I have tried with our mortgage lender but as I want to consolidate my debt, my exsisting lender takes into account my current level of debt and the extra borrowing to see as to whether I can still afford the repayment on my mortgage, which when you add it all together given my current salary according to their criteria then I can't afford it. Their quote was that according to FSA figures 68% of people that borrow don't pay their debt off, so we are all tarred with the same brush!!!
So the only option open to me is a secured loan and when I saw 9.3% that's what got my attention

bargainbetty

They might be offering that rate in general, but there is no guarantee you will get it! You will be offered a rate based on your circumstances when you do the full application, and that might be higher than you expected.

If your existing lender doesn't think it's a good idea, perhaps you could try tightening your belt and trying to pay down some of the debts rather than refinance them this way.

I'll be honest, I consolidated twice. Once onto my mortgage and once with a loan. Still took me another round of credit card debt before I realised it was my lifestyle that had become unsustainable, and was just taking my debt with it. It was a hell of a realisation for me, and it took six years to get out of the hole.

Pop over to the Debt-free boards, and there are loads of people who will help you manage your debts and reduce your ependiture. Until you have that in place, the consolidation might be just a short-term fix.

Best wishes x