Loan APR

tony_428

Can anyone help?

I've recently applied for a personal loan to buy a used car, I applied through Santander as I have my mortgage and business bank account with them and they were offering a 3% APR which was far better than any car finance deal I would be able to get.
I got accepted today but it's come in at 11.9% APR which is much more interest than I wanted. Now I understand why this has happened and know not really much can be done as it's down to my disposable income/expenditure etc. BUT does anyone know if I was to apply for a loan with other companies it would be a different story? Also what effect would multiple loan applications have on my credit file?

Anyone got any experience or advice on this or is it a case I'm going to have to lump the higher interest rate?

Thanks

[Deleted User]

It's certainly worth one more try.

Aim for a more modest rate this time in the hope of getting the headline rate.

redux

Some places have the best rate in a range of about £7k5 to 15k.

If you were looking lower, like £5k, it might be worth stepping it up a bit then paying back a decent chunk at the start.

Conversely, on more, I'd prefer to say look for a cheaper car.

tony_428

Thanks, I'm assuming I would have to reject the previous loan offer first before a new application goes in?

Also, would it be better to apply with a company/bank where I'm a customer or does customer loyalty not mean as much these days?

[Deleted User]

No. Keep the first offer and accept it if the other comes in worse.

Use an eligibility checker rather than your own bank. Neither customer nor lender is interested in loyalty these day.