Northern Rock offer me 6.9%

snakey_2

have recently applied for a loan with Northern Rock which I was expecting the 5.8% rate, though I received the application today through the post and have been given 6.9%! I have had three loans in my life and succesfully paid them off, in addition to this I had my pc on 0% finance 9 months which 14 days ago I paid off with a month still to go! Any explanations or thoughts from anyone?

Thanks

Taffy_Boy_3

This depends on a number of things

1) How much was the loan for??
2) How much do you earn??
3) Are you sure you have no bad credit, (the only absolute way would be to get a copy of your credit report from the 3 credit reference agencies)
4) Have you asked Northern Rock why this is??

Sometimes you have to be a high earner and have an outstanding credit rate before they will give you that rate, (not to say that you are not any of these)

MM

snakey_2

I had one loan with my bank hsbc for £2000, about 6 months later I took another £2000 but paid off the first loan. I have just paid this loan off with my bank. Back in Jan this year I took 0% 9 months finace for £800 which I have also paid off well before the 9months were up.

I earn £17000 a year.
As far as I know I have no bad credit.
Will give Northen Rock a call.

Any ideas on the given reply money mad?

Cheers for your time

Lisa-Lou_3

With regard to the Northern Rock 5.8% loan
I work part-time 18.5 hrs (Local Council)
Applied for £15000 listed husbands income as well
and got the 5.8% never had a loan in my name before.
Who knows how they work it

zcaprd7

As Money Mad said, sometimes you need to apply for a largish amount?

simonfr

Dont think thats the case...

I applied for £25k over 8 years, and got offered 7.9%!!

Needless to say told 'em to get stuffed (earn £30k+ pa)

Its a black art i tell's yer!!

Simon

snakey_2

7k is what I asked for, do you think I should try elsewhere or will I more than likely get the same rate?

simonfr

Dont know if you'll get cheaper than that, except from Cahoot maybe, or Alliance and Leicester are advertising 5.9% too?

As the BoE rates have risen the general loan market seems to have risen, leaving a few gems such as these.

There is the links martin has on the best buys section, like moneysupermarket and the like.

Whether you get the headline 'typical' rate will be down to the lending criteria.

Simon

Tr@cker

I tried for 6.5k with A&L. They advertise 'typical 5.8%'.
After doing their damndest to sell me loan insurance but not succeeding they then said the rate i was being offered was 8.5% !
It's not a question of how good your credit record is. You might have 100 % record with payments-mine is. Other factors like age, homeownership etc are taken into account. I told them to shove it-i'll probably keep on card 'tarting' now but if they dont actually refuse you a loan you can try as many applications as you like and you'll at least get an offer.
This 'typical' rate though is getting a bit of a con and i suspect it's not so typical-they just want to tempt you in then offer you something else.
Also, i early-settled a loan with N/Rock recently. Two years early on a 4 year loan. Under the iniquitous rule 78 i paid two thirds of the total interest for what was effectively a 2 year loan. It's debateable whether or not it's worth early settling under these terms.

shonky_aussie

Try Bank of Scotland - they have non-risk based pricing and I think are priced at 6.2%. ie if you are approved they will offer you that rate.

skdotcom

I had a similar situation, where I applied for a £10k loan with Northern Rock. They offered me a rate 1% more than I was expecting, even though I'd had a previous loan with them. I've never had credit problems so was a bit annoyed. I immediately applied for a loan with Marbles and got the rate I wanted (5.9%).