Extending Current Loan

holyfire82

badmemory, im not desperate or near to being that point but thanks anyway! iI have a steady monthly income and a solid job. Im not looking to borrow loads and loads - im 35 and this is the first loan or borrowing i have ever done.

i guess i just wish i went back 3 months and borrowed a bit more initially. unforntnatly the oringal reaosns i had to get the loan was to pay for some unexpected things like funerals and the expenses related to these. Afterwards i could have done with a little more left over so wish i had took more out. My monthyl payments are £80 and it really wouldnt matter to me if the loan was larger and the payments went up to £130ish as it really isnt a big issue.

Maybe if i still want to have the larger loan the best would be to use another provider such as adrimal/aa/post office and get the 6000 and use some to pay off my remaining santander loan. at least if i wanted to do that i would have the extra money i should have got out int he first place.

if that makes sense

holyfire82

also....the mse loan calculator is good - i have a lot of 'excellent' and 90% chance of approvals on there - but santander's is 60%

would the fact i am an existing customer of theirs count and increase that eligibility? or not? if i did get the larger loan id prefer it to be with my own bank - just for ease of use really.

MallyGirl

holyfire82 wrote: »

Hi

Anyway - i was stupid and didnt realise that my loan has an apr of 21%, and if i had gotten a loan of more than £5000 the apr would decrease massively to around 5%. i had asked the bank the next month about changing my loan but was told that id need to wait 90 days before applying for this.

This is extremely unlikely. Some people will get an APR of 5% for that size loan - it is not likely, with your limited history, that you would be one of those lucky few.

holyfire82

I know mallygirl - i mean the rate offered on their site for my original £3000 loan was something like 14 or 15% and i got 21%

so with those ratios the 5% would be closer to 10% probably but that's still just over half of what i have now.

MallyGirl

I am not sure that you can make that assumption on the rate

holyfire82

i guess you're right - its just a reasoned assumption based on the following:

i mean, i have no other debts (small overdrawn fees the odd time withstanding), ccjs, credit cards, steady monthly income in the same job for 10+ years now and ive had my current account for 20+ years too. Never missed a bill or direct debit payment for phone/or the union im in..... so id figure that would come into play as well.

or am I missing something and im wrong?

thanks again

[Deleted User]

holyfire82 wrote: »

or am I missing something and im wrong?

Yes. You're missing the fact you already have an expensive loan and keep going overdrawn.

That tells lenders that you have no spare money at all and are therefore high risk.

bazzyb

You've basically asked the same question several times but the only way you will find out if you will be accepted, and at what rate, is to apply.

As many others have pointed out it is an extremely bad idea to borrow more money just to get a better rate. If you were looking to borrow the same amount from somewhere else to replace this one and save on interest a little I could kind of understand where you are coming from - but what you are suggesting sounds pretty bonkers to me.

Gaz83

OP, have you missed any payments on your current loan?

holyfire82

no i havent missed any payments.

and i do not 'keep' being overdrawn - i have gone into my overdraft twice (including now) the entire time. its a fraction of my limit and will be repaid in full in a matter of days, as was the case the other time.

I wouldnt think being £90 overdrawn when my limit is £1300 is that huge of a deal, especially when its only for a short number of days I know the overdraft is a debt though and is far from ideal - but i wouldnt think it would matter as its always been repaid in full quickly.
just to clarify - i havent been declined a loan - i am asking is it reasonable to extend/increase my current loan from £3000 to £6000 -or becuase its only 4 months or so since my loan would i be more likely to be rejected?

bazzyb - maybe im not explaining myself - i simply wish to have had a loan of £6000 instead of £3000 as looking now that was the more desirable loan for me - but i didnt put enough thought into it a the time.

I could get a loan from someone else and use that to pay off my original loan - or i could with a loan form my bank - which to me seemed the easiest option as they are my bank anyways - but maybe i will get a better rate form another provider. I'm not getting a loan to pay off anything - i simply wished to (turn back time) and have the extra money i would have had if id gotten the larger loan int he first place.

hope that makes more sense - apologies if it hasnt! and thanks everyone for your responses