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Shawbrook Bank

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

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    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?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • 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
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



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