Santander loan - very high rate

mimmygrr

I've been offered a loan by Santander at 9.9%, over twice the representative rate of 4.5%. Whilst I understand what representative rate means, this seems extortionate. I've checked my credit rating and it's excellent, plus I've been a customer of Santander for around 8 years. I've queried it but to no avail. Has anyone had any success getting a loan rate changed?

The loan is for £8600 to consolidate two credit card debts - could it be that although I would pay off the debts with the loan, that the level of credit available to me would be very high and that's affecting the decision?

R_P_W

That rate isn't too bad!

Caz3121

It is very likely that, if you have £8,600 in current debt and you then borrow £8,600 there is nothing to force you to use the money to pay off your existing debt so you now have a total debt of £17,200.

9.9% actually not that bad and will be a reflection of your good financial behaviour....plenty people will get rates of 15% +

[Deleted User]

Agree - it's a good rate. Certainly a long way short of extortionate.

If it's less that you are currently paying that I would grab it.

mimmygrr

Thanks for your replies. I'll stop getting outraged and accept it then!

I think I have a tendency to get a little irate when it comes to anything to do with Santander...

bigadaj

mimmygrr wrote: »

Thanks for your replies. I'll stop getting outraged and accept it then!

I think I have a tendency to get a little irate when it comes to anything to do with Santander...

In that case, if I were you I'd go elsewhere.

poppasmurf_bewdley

Consolidation loans are nearly always charged at a higher rate than for other loans. In the current climate, I don't think the rate you have been offered is too bad.