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sudden increase in bank interest rate for loans

billh65
billh65 Posts: 6 Forumite
I have been toying with the idea of getting a personal loan to buy a new car, as opposed to hire purchase. I took a look at my bank's pre Ok'd possible loans a couple of weeks ago and they were quoting 9.9%. However I rechecked today and this has now changed to 19.9% (a masive increase) for no apparent reason. Obviously I have no intention of applying at this interest rate. My income hasn't changed nor any other details. This seems a little weird.
Has anyone else had similar experiences?

Comments

  • BMN
    BMN Posts: 330 Forumite
    Maybe their own attitude to risk has changed.
  • billh65 wrote: »
    I have been toying with the idea of getting a personal loan to buy a new car, as opposed to hire purchase. I took a look at my bank's pre Ok'd possible loans a couple of weeks ago and they were quoting 9.9%. However I rechecked today and this has now changed to 19.9% (a masive increase) for no apparent reason. Obviously I have no intention of applying at this interest rate. My income hasn't changed nor any other details. This seems a little weird.
    Has anyone else had similar experiences?

    Who do you bank with?
    "You know when it's cold outside when you go outside and it's cold"
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Possibly not in the market for new business at the current time.
  • Thanks for all the replies. My bank is Barclays and I have been with them for about 20 years. Strangely they have also increased my available credit card limits this month too, almost as if they are trying to encourage lending on the card but not personal loans.
  • dotdash79
    dotdash79 Posts: 1,069 Forumite
    Could it be that you have had a couple of searches on your file and now you are looking a bit desperate for a loan?
  • Cycrow
    Cycrow Posts: 2,639 Forumite
    The increases in your limits could have had an effect on your affordability, which could be the reason the rate has gone up
  • billh65
    billh65 Posts: 6 Forumite
    edited 5 February 2014 at 4:30PM
    no new searches on credit as far as I can see and I have always paid credit card in full every month but thanks for your suggestions
  • tinkerbell28
    tinkerbell28 Posts: 2,720 Forumite
    Barclays pre approved offers are also based on internal factors. Like has been said.

    How much loan business they want, how much they have to give in overdrafts, how much they can give in loans etc.

    They can go up and down, even without external factors or changing your account usage.
This discussion has been closed.
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