3.1% turned into 9.9% with AA

pmartin86

Herzlos wrote: »

£70k is in the region of £5800/month after tax. You've got £1200 going out in mortgage/debt, so what's happening to other £4600?

Wouldn't it be lovly to live in a world without tax??

System

Still £2800 left after tax and mortgage/debt.

vacheron

pmartin86 wrote: »

Wouldn't it be lovly to live in a world without tax??

LOL, My thoughts entirely.

After pension contributions, sharesave deductions tax and NI, my current net salary is less than 40% of my gross.

I'd hope at 70K the OP would be making some significant pension contributions to keep their 40% tax element in check.

ReadingTim

Herzlos wrote: »

£70k is in the region of £5800/month after tax. You've got £1200 going out in mortgage/debt, so what's happening to other £4600?

No, it really isn't.

£5,800/month is the figure before tax, the figure after income tax and NI is about £4,000. Of that, the OP only mentions mortgage and CC repayment as outgoings, omitting council tax, gas, water, electricity, phone (landline or mobile), internet, road tax, fuel, car maintenance,car insurance, buildings insurance, contents insurance. They may have health or dental insurance, sky tv, trade union subs, gym membership, plus might occasionally need to buy food or clothes.

Suggest that's where quite a lot of the rest goes...

Herzlos

ReadingTim wrote: »

No, it really isn't.

£5,800/month is the figure before tax, the figure after income tax and NI is about £4,000. Of that, the OP only mentions mortgage and CC repayment as outgoings, omitting council tax, gas, water, electricity, phone (landline or mobile), internet, road tax, fuel, car maintenance,car insurance, buildings insurance, contents insurance. They may have health or dental insurance, sky tv, trade union subs, gym membership, plus might occasionally need to buy food or clothes.

Suggest that's where quite a lot of the rest goes...

My bad, I just used a wage calculator and misread. Still, I pay all of that stuff from a post-tax salary of under half of that (2 kids in a 2 bed home as well), so the point still stands, just with a smaller number.

Another thought; what were the repayment terms you were looking at? I saw a similar rate jump when I tried to pay over more than 60 months (5 years). You might be hitting something similar.

somethingcorporate

SuperHan wrote: »

As others have said, it's impossible to know.


The advertised rate just means that 50% of applicants get that rate. Which means no lender is more likely than others to give the advertised rate (or it would be very difficult to ascertain if that were the case), as if more people were getting lower rates they would reduce their advertised rate.


Your best chanced are with the higher scores on the eligibility checker, but that is by no means in any way a concrete indicator.


You'll just have to pick and see.

Successful applicants, not just applicants.

colesy

Herzlos wrote: »

£70k is in the region of £5800/month after tax. You've got £1200 going out in mortgage/debt, so what's happening to other £4600?

No it’s not. £70k works out at just over £4k pcm after tax.

siowenson

Good news: I tried Tesco this morning and they've offered me 24k over 5 years at 3.3%. The only adjustments I made were changing the loan from 25k to 24k and 6 years to 5.
I can't believe I'm only paying back an extra 2k over the term. To say I'm happy is an understatement!

martynjwood

Issue with AA is that the APR changes after the hard check so it has already potentially affected your credit file/score by the time you know the APR has been upped. No other lender I looked at did this. APR changed after the soft search as part of eligibility checker on lenders website.

Simples.... Do not use AA. Well 49% of you do not use AA, 51% will get the 3.0% APR.