Loan Calculator - Lloyds

REBECCASMUM

Hi

I'm after some guidance. I have a loan with £9000 remaining at 9.7%. Five years left.

We desperately need some home improvements and am looking to top up my loan to £19000. Seeing the bank on Monday. Naturally I have been doing my homework: I've got all our credit reports (this is a joint application) and we both have scores of 999.

I was using the lloyds loan calculator on the Internet banking, and the 'personalised' quotes were returning results with APR of 3.9% - 4.5%. Great.

However, suddenly, the quotes started coming back at 11 - 12%. My circumstances haven't changed, neither has my credit rating. I got a bonus in June.

My questions are, if someone wouldnt mind advising:

a) how 'personalised' are these quotes?
b) are they are true reflection on what we are likely to be offered?
c) what factors, exactly, influence these 'personalised' quotes?

Any advice would be appreciated. I'm truly baffled.

Gaz83

REBECCASMUM wrote: »

Hi

I'm after some guidance. I have a loan with £9000 remaining at 9.7%. Five years left.

We desperately need some home improvements and am looking to top up my loan to £19000. Seeing the bank on Monday. Naturally I have been doing my homework: I've got all our credit reports (this is a joint application) and we both have scores of 999.

I was using the lloyds loan calculator on the Internet banking, and the 'personalised' quotes were returning results with APR of 3.9% - 4.5%. Great.

However, suddenly, the quotes started coming back at 11 - 12%. My circumstances haven't changed, neither has my credit rating. I got a bonus in June.

My questions are, if someone wouldnt mind advising:

a) how 'personalised' are these quotes?
b) are they are true reflection on what we are likely to be offered?
c) what factors, exactly, influence these 'personalised' quotes?

Any advice would be appreciated. I'm truly baffled.

a) They're not. There will be something along the lines of 'the exact APR you are offered will depend on your own financial circumstances and credit history

b) Depends how you define 'likely'. They have to give 50%+1 of successful applicants their headline rate. The other 50%-1 can be offered a different rate.

c) No-one can really tell you. Companies don't advertise what their preferred lending criteria is, because then all that would happen is applicants would tailor their applications to meet this preferred criteria.

As you've also found out, credit scores are utterly meaningless.

DCFC79

The credit agencies have no idea what you earn nor where you work.

Whoever rates you as 999 maybe they are the ones to give you a loan.

KJSmith

REBECCASMUM wrote: »

a) how 'personalised' are these quotes?
b) are they are true reflection on what we are likely to be offered?

The personalised quote is the actual APR that you will receive if the loan is accepted.

REBECCASMUM wrote: »

c) what factors, exactly, influence these 'personalised' quotes?

Lots of factors including your credit history, how you run you Lloyds bank account/credit card etc.

REBECCASMUM wrote: »

Any advice would be appreciated. I'm truly baffled.

When did you obtain the quotes for 3.9% - 4.5%?

Lloyds update their personalised loan pricing every month. I'm informed that the next update will be from the start of next week.

REBECCASMUM

Thank you all for advice. I feel inclined to give you an update.

Went to lloyds today to discuss the loan, and as anticipated, we were offered the loan at 11.7%. We said no thank you but would appreciate some guidance on why the offer went from 3.9% a couple of weeks ago, to 11.7% when nothing had changed in our circumstances.

The lady couldn't really give a reason but said the interest rate increase coincided with a withdrawal on our savings account.

???

Anyway. We declined that offer, went to Tesco and got an immediate accept decision at 3.4%.

Still flabbergasted, mind.

DCFC79

REBECCASMUM wrote: »

Thank you all for advice. I feel inclined to give you an update.

Went to lloyds today to discuss the loan, and as anticipated, we were offered the loan at 11.7%. We said no thank you but would appreciate some guidance on why the offer went from 3.9% a couple of weeks ago, to 11.7% when nothing had changed in our circumstances.

The lady couldn't really give a reason but said the interest rate increase coincided with a withdrawal on our savings account.

???

Anyway. We declined that offer, went to Tesco and got an immediate accept decision at 3.4%.

Still flabbergasted, mind.

Each lender will rate you differently based on your credit file and the information you provided at application and the rate offered will be based on this.