Loan Interest

alex_leeds

Hi,

I got a new loan from my bank first direct at the end of January at a rate of 16.9%.

Now looking on the website they have a new loan intrest rate of 4.9%, is there any way i can change to this rate?

Surely its not fair!

Thanks

Cycrow

rates are subject to status.

even thou they have a rate of 4.9% doesn't mean you would actually get it

CLAPTON

alex_leeds wrote: »

Hi,

I got a new loan from my bank first direct at the end of January at a rate of 16.9%.

Now looking on the website they have a new loan intrest rate of 4.9%, is there any way i can change to this rate?

Surely its not fair!

Thanks

they will have accessed your loan application based on your credit files, your income and record with the bank.

unlikely they will change their mind but depends upon your circumstances

somethingcorporate

The headline rate in January would have been around the same as the current one, you were offered a loan based on your risk profile. You're not the kind of applicant that qualifies for their best rate.

If you thought it was unfair at the time you didn't have to accept the loan.

DCFC79

alex_leeds wrote: »

Hi,

I got a new loan from my bank first direct at the end of January at a rate of 16.9%.

Now looking on the website they have a new loan intrest rate of 4.9%, is there any way i can change to this rate?

Surely its not fair!

Thanks

Yes its fair, maybe the 16.9% was the best rate you could get and as you got it from your bank they are best placed to deem the rate offered as the best they could do.

alex_leeds

I think my question has been misunderstood, at the time i got the loan two weeks ago 16.9% was the typical rate, just this week the new typical rate has been reduced to 4.9%

Apples2

What if you got a loan for 4.9℅ but they had now gone up to 16.9℅

Would you be okay with changing to the higher rate?

DCFC79

alex_leeds wrote: »

I think my question has been misunderstood, at the time i got the loan two weeks ago 16.9% was the typical rate, just this week the new typical rate has been reduced to 4.9%

Yes I understood what you meant, would you be eligible for the 4.9% ?

Whether you would get the lower rate is dependant on how much a risk the bank will think you are, they will look at your credit file and score you accordingly.

BillJones

alex_leeds wrote: »

I think my question has been misunderstood, at the time i got the loan two weeks ago 16.9% was the typical rate, just this week the new typical rate has been reduced to 4.9%

This is not right. Rates have not moved significantly in the last few weeks.

jamesd

You have 14 days from taking out the loan during which you have a right to cancel. You could cancel and apply again.

If the 14 days have elapsed you have a right to repay the loan at any time, typically paying a month or two's interest for doing so, though that varies between lenders.

You don't have any right to change the terms of the current loan, just to cancel and apply for another.

If you no longer have the money to return it as part of cancelling you can try to get another loan from somewhere else and use the money from that to repay this one.

imoneyop

alex_leeds wrote: »

I think my question has been misunderstood, at the time i got the loan two weeks ago 16.9% was the typical rate, just this week the new typical rate has been reduced to 4.9%

16.9% was not the typical rate for any bank 2 weeks ago - it might have been 5.9% and they've decicded to drop it by a %, but there is no way any bank had a headline rate of 16.9%.

As others have said, 16.9% is what you were offered based on how the bank underwrote you and decided your risk.

You could apply to them now for this wonderful 4.9% rate, but as you didn't get it 2 weeks ago you certainly won't get it now.