Help!!!!!

DarlingP

I applied for a loan on two weeks ago with my bank HSBC and was successful and the money transferred to my account.
I initially had a £10,000 loan with £6,000 left to pay.
I needed to borrow £11,000, with the repay of the existing loan of £6,000, so £17,000 in total. The total payback is now £24,000!!!!!!!!!!
I asked for it to be over 72 months which initially came out at approx £292 with an APR of 3.3% or thereabouts. It then recalculated and came out at £345 over 72 months with an APR of 12%.
I contacted the bank and asked that if I paid it off over 60 months, would it bring the APR down?
They have said that because I ticked the terms and conditions, they cannot change anything!!
A question I have is, should I cancel the loan??
Please help

[Deleted User]

That's up to you. Doy ou need the money, and if you do, can you get it cheaper elsewhere?

We can't make that decision for you.

BoGoF

If you can make overpayments to clear the loan quicker then you will be less interest. You would need to check your loan agreement to see what it says about overpayments.

BakingC

By applying for the £17K with the intention of paying back the £6k loan with part of it the bank will have assessed you as getting £17K + £6K on the other one as there is no guarantee you would pay back the debt. This most likely explains the higher interest rate as they have deemed this larger amount to be higher risk.

I assume the 3.3% was the headline rate and you used a loan calculator to give the initial monthly payment without actually providing any details they could use to perform a credit risk assessment on you then upon applying it said the 12%.

APR is annual interest rate so decreasing length of loan would increase monthly payment, reduce total interest but would not reduce APR.

You could cancel the loan then try and get 1 for £11K and overpay the £6K to get rid of as soon as possible to reduce interest. But depends how urgently you need the cash as if you think you would get another loan at a cheaper rate.

Head over to Debt free wannabes they might be able to help with money saving tips to find you the spare cash to help overpay

foxy-stoat

If you had the funds for more than 14 days you will have to call them up for a settlement figure and clear the loan if you want to, you will have to pay a couple of months interest.

If its within 14 days you can pay the money back with little/no charge but read your agreement.

12% over 6 years on £11K is a little too much.