Santander 4.5% (not for all)

RKDeol

I successfully applied for this loan online but when I received the contract a few days later it stated my interest rate is 11.1%. Thinking it was a misprint I called Santander only to be told that not everyone gets 4.5%, it's based on individual applications.

Thanks for awarding my loyalty over the years. Obviously I declined to take up the loan. Very disappointed.

CLAPTON

RKDeol wrote: »

I successfully applied for this loan online but when I received the contract a few days later it stated my interest rate is 11.1%. Thinking it was a misprint I called Santander only to be told that not everyone gets 4.5%, it's based on individual applications.

Thanks for awarding my loyalty over the years. Obviously I declined to take up the loan. Very disappointed.

without knowing your income, your debts, what your credit files say then it's impossible to know how reasonable their decision is.

declining the loan was very sensible if you can get a better offer elsewhere or don't really need it anyway.

Keekles

Unfortunately a couple of years ago in my misguided-debt-consolidating-youth I had no idea and accepted a loan online at 12.9% through Santander.

They claim they can beat the rate in branch but I'm not sure if that's sales patter or genuine, so heading into branch this week to find out either way.

Apples2

RKDeol wrote: »

I called Santander only to be told that not everyone gets 4.5%, it's based on individual applications.
.

Only 51% of successful applicants get that rate, this is the Industry norm.
All the rest of the successful applicants get a higher rate, you are in the 49% group.

The rate you will pay depends upon a credit assessment conducted by us of your individual circumstances and the rate offered may differ from the Representative APR.

JuicyJesus

They rate for risk. If you're a higher risk the rate goes up. Virtually every bank is the same. Loyalty doesn't come into it - you can be with a bank for 50 years and still be a poor credit risk.

opinions4u

There's a commercial case for charging loyal customers more.

Less likely to go elsewhere = more likely to pay a higher price to stay.

I'm picturing a wonderful optimum point on the low risk / high profit margin pricing model that maximises revenue for the lender at the willing expense of their loyalist customers.

bigadaj

opinions4u wrote: »

There's a commercial case for charging loyal customers more.

Less likely to go elsewhere = more likely to pay a higher price to stay.

I'm picturing a wonderful optimum point on the low risk / high profit margin pricing model that maximises revenue for the lender at the willing expense of their loyalist customers.

To be fair to banks, not that I particulalrly want to be, it's the same in most businesses. We now seem to haggle a lot more on most things than we did a few years ago, if you don't you're just seen for a mug who is ripe for ripping off.

Interestingly it seems to vary whether this is best done online using comparison sites to or just ringing up and threatening to change to get the best deal.

Cash_Flow

RKDeol wrote: »

I successfully applied for this loan online but when I received the contract a few days later it stated my interest rate is 11.1%. Thinking it was a misprint I called Santander only to be told that not everyone gets 4.5%, it's based on individual applications.

Thanks for awarding my loyalty over the years. Obviously I declined to take up the loan. Very disappointed.

Since when did Santander offer loans at 4.5% ?

gb12345

Cash_Flow wrote: »

Since when did Santander offer loans at 4.5% ?

It would appear that they don't - not even for loyal customers - lowest rate appears to be 5.9%.

chalkie99

Cash_Flow wrote: »

Since when did Santander offer loans at 4.5% ?

To be fair, this is what they were advertising a few days ago as a short term offer - referenced here:

http://www.thisismoney.co.uk/money/cardsloans/article-2520891/Santander-drops-loan-rates-record-low-4-5--But-Sainsburys-Bank-small-print-cheaper-deal.html

RKDeol

opinions4u wrote: »

There's a commercial case for charging loyal customers more.

Less likely to go elsewhere = more likely to pay a higher price to stay.

I'm picturing a wonderful optimum point on the low risk / high profit margin pricing model that maximises revenue for the lender at the willing expense of their loyalist customers.

I couldn't agree more, thanks.