Northern Rock Loan

panholio

Hi!

I applied for a Northern Rock Loan for 5k last week, being tempted by the 6.2% Typical APR....

Reason for the loan is for a new car, I have some ludicrously expensive outstanding finance on my old car which I will pay off (3k) and luckily my car doesn't seem to have lost a huge amount of value so I can sell it and get a new one.

I'm down sizing from 2 cars (a powerful petrol one and an old banger) car to a diesel with much cheaper insurance/ running costs etc.

Had the loan back from Northern Rock and they've accepted it but at 8.9% APR!

My credit history isn't exactly rosy, I've just moved house and I have a default notice on a credit card from about 4 years ago (now settled). I definitely have the odd missed/late credit card payment from my student days (you'll be pleased to know all my credit cards are paid off!)

My question is will I do any better or should I just accept this loan? The difference in monthly payments is about £6.

Most delaer car loans I've seen are around 12-15% APR. My current one is 16odd %.


Thanks in adance!

Phantom_Flan_Flinger

Northern Rock are just like everyone else. Their quoted rate isn't necesserily what you get. That why it always says something like "6.2% typical."

If your credit history isn't great, as you mentioned, 8.9% doesn't seem too bad. Just remember not to take out their PPI. It won't be a condition of the loan.
If you feel you need some cover for your loan, there are cheaper alternatives.

If you don't accept the loan and try someone else, just remember that applications close to each other affect your credit rating, so the more you apply for and go through the full process with, the harder it may be to get a loan, or one with a decent rate.

DesG

The typical rate should be given to 66% from memory.

8.9% seems pretty good with a non-rosy past

There is a 30 day cooling off period with Northern Rock for the PPI, so if they are giving you the hard sell on it, just accept it and _REMEMBER_ to cancel it within 30 days

Cheers, Des.

spurs_nut

panholio wrote: »

Hi!

I applied for a Northern Rock Loan for 5k last week, being tempted by the 6.2% Typical APR....

Reason for the loan is for a new car, I have some ludicrously expensive outstanding finance on my old car which I will pay off (3k) and luckily my car doesn't seem to have lost a huge amount of value so I can sell it and get a new one.

I'm down sizing from 2 cars (a powerful petrol one and an old banger) car to a diesel with much cheaper insurance/ running costs etc.

Had the loan back from Northern Rock and they've accepted it but at 8.9% APR!

My credit history isn't exactly rosy, I've just moved house and I have a default notice on a credit card from about 4 years ago (now settled). I definitely have the odd missed/late credit card payment from my student days (you'll be pleased to know all my credit cards are paid off!)

My question is will I do any better or should I just accept this loan? The difference in monthly payments is about £6.

Most delaer car loans I've seen are around 12-15% APR. My current one is 16odd %.


Thanks in adance!

Think you've pretty much answered your own question.

chani1

to des g just to point out that taking out ppi even if you can canx within 30 days with most lenders still involves going through new application process in turn another credit check as you are changing the terms and conditions of the original agreement so my advice is if you don't want it in first place then just say no it does't matter wether how hard the sell is just say no and dont back down after all ppi is never mandatory.

DesG

chani1 wrote: »

to des g just to point out that taking out ppi even if you can canx within 30 days with most lenders still involves going through new application process

Thanks for the info!

Does this apply to Northern Rock do you know?

There are so many stories of people on here getting offered a decent rate, and when they say they don't want PPI the company jack the rate up!

Cheers, Des.

Phantom_Flan_Flinger

DesG wrote: »

There are so many stories of people on here getting offered a decent rate, and when they say they don't want PPI the company jack the rate up

I've had a few loans with NR, all now paid off.

They've always told me what the APR is before they done the PPI hard sell.

They've never raised the APR once I've declined the PPI.

panholio

Cheers for the replies.

I have acdepted the loan, I stated on the online application that I did not want PPI so it's not on there.

They did amusingly send me a letter that said "they are concerened I have no protection" and that "I should call them to discuss".

I just won't.

Hespie

My partner and I applied and were accepted for a loan of 4k with Northern Rock, and were subjected to the usual hard sell for insurance.
Strangely (to me anyway), the salesman asked how much we wanted to pay per month, and when I gave him a figure he put me on hold then came back and said 'Good news, our broker can arrange PPI for just £1 per month over that figure'
£1 a month sounded reasonable, so I agreed, only to find that when the paperwork arrived, the real figure for PPI was nearer £13 a month, so I signed and returned the paperwork with a covering letter declining PPI and waited. And waited. And waited.
Finally my partner called NR to enquire as to the whereabouts of the cheque, only to be told that a) they wouldn't discuss it with him because he was only the second named applicant and b) due to my declining the insurance they 'needed to talk to me'
I rang, was put on hold three times over the space of 15 minutes then told their system was down, could I call back later?
My cancellation will be in the post .... is it me?

panholio

I haven't had this at all. Never selected it on the website and they've not hassled me.

I suppose I applied online. All I had was a letter saying they were concerned I haven't got protection and that I should call them.

I presume you applied over the phone?

Onlien would be my advice, they can't really do the hard sell there!

Spicypedro

I just had a nightmare hard sell from Northern Rock.

I applied for the loan online yesterday but never got a confirmation email so thought I'd phone them to check on it today. (I'm going car shopping tonight so I wanted to be sure the loan application had been accepted).

I was transferred to the loans dept and the nice Scottish fella went through all the extra questions that aren't included on the web form. He went away and then came back to congratulate me. The loan had been accepted at 6.2%. He complimented me on my excellent credit rating said he wouldn't insult my intelligence by trying to sell me expensive, payment protection but was a little concerned by my low amount of Life Assurance. They recommended not the gold, not the silver, but the lowest price bronze cover at only 18p per day.

I politely aid I wasn't interested as I don't buy things over the phone without having the details on paper in front of me. He just kept saying "I don't think you understand what would happen if anything were to happen to you." and "why don't you want it". He started saying things like "Think about your wife and child" and he was getting quite aggressive.

I told him I didn't like his sales method and felt I was being bullied. He persisted for a bit and then really angrily ended the phone call with all the legal blurb.

If they're so concerned about whether I can pay the loan back, why accept the application?