tesco loan question

james3333

hi all,
i currently have a tesco loans ( 4k left to pay @6.2%!)
i want to borrow some more 10k .....the current tesco rate is 3.2%
if i do 'additional borrowing' does anyone know if the WHOLE loan will go onto the small rate?
i.e all 14k @ 3.2%?

cheers

[Deleted User]

I'd imagine only the new borrowing would go onto the new rate.

But the new rate may not be 3.2%, as that is the headline rate. It could be higher.

KJSmith

I'm fairly certain that taking out additional borrowing would mean that a whole new loan is taken out to cover both the additional borrowing and to settle the existing loan.

EDIT: Just found this link which seems to confirm my thoughts - https://yourcommunity.tescobank.com/t5/Loans/Can-I-increase-my-existing-Tesco-Bank-loan/ta-p/714

iolanthe07

the current tesco rate is 3.2%

But only to 51% of successful applicants. Don't be surprised or disappointed if you are offered a much higher rate.

james3333

think i should get a good rate, i usually do....
so, to clarify, the remainder of my loan would go onto the new loan...so cant go wrong really, it will be at lower rate! :money:

[Deleted User]

james3333 wrote: »

think i should get a good rate, i usually do....

I thought your current rate was 6.2%?

james3333

Deleted_User wrote: »

I thought your current rate was 6.2%?

hahaah, good point... it was at a time when tescos lowest rate was 6.2%!

foxy-stoat

james3333 wrote: »

think i should get a good rate, i usually do....
so, to clarify, the remainder of my loan would go onto the new loan...so cant go wrong really, it will be at lower rate! :money:

Go ahead and apply, if your current salary is at least £28,000 and you have not other debt and a better than excellant credit history. Just let us know how you got on....oh if you put down that part of the loan is for debt consolidation, ie paying off an existing loan, then you probably wont get the headline rate.

Gooooood luck

Moneycoach

Most lenders apply the lower rate to the new part of the loan unless you switch provider.


Can I ask why you want to borrow £10k more?