Loan Appeal Success question

luckylas

Hi posted last week about loan appeal success stories/experiences as my loan had been declined. I appealed last Thursday and they have accepted my appeal, however not the rate I wanted which was 2.9% and has increased to 8%.

I'm not 100% whether to accept this offer due to the increase in percentage but my chances are quite slim in getting anything else due to hard searches on my file. Is it possible to credit build with this offer? and change loan maybe in 6 months time?

StopIt

You're highly unlikely to get a loan at a better rate in 6 months.


Mainly because while it'll be basically re-financing, you'll be judged on having your current loan AND another loan, almost doubling the debt for the affordability checks.


8% isn't the worst rate in the world but it doesn't set the world on fire either. An 8% rate on a 50% debt to income ratio is maybe the best you'll get too. Applying for another loan 6 months later will mean you'll be tested on a total debt load of £20k, or 100% debt to income. That will put you firmly in sub-prime territory.


Consider your options for sure, but I wouldn't be expecting the headline rate in your circumstances.

luckylas

Thanks for reply, right I see that makes sense.

Do you think I may be in a better position to refuse the loan and attempt to get myself in a better place for 6 months time for a better rate?