Santander loan

leighdancer

I’ve just applied for a £12000 for a new van for my business. Yesterday I was told I have been excepted. Great I though. Today however I have had a email saying the apr is 13.90% APR when I applied it was 3.8%APR can anyone tell me if I can contest this? It’s put my monthly budget way over what I wanted to pay should have been £217/month but now £273.56/month they say it’s bacex on my credit score (990 I checked prior to applying) and affordabilty this is now making it more expensive and should I go ahead will put me under financial strain. Has anyone had any experience with this? Can anyone help? Credit score has now been reduced due to the application.
Thanks Leigh

Willing2Learn

Your APR is determined by your circumstances and is only finalised once the loan application has been processed. If the repayments are too high and beyond your budget, then I suggest you cancel the application during the cooling off period.

Why not make a second application to another lender, to see if you can get a lower APR.

Don't worry about your score as lenders neither see nor use it. Your credit score is for you eyes only.

[Deleted User]

They're unlikely to change it, as it's based on your risk.

It's not based on the pretend credit scores you see at the CRAs, but on the score they give you in assessing your application. It also doesn't matter that the pretend score has now reduced.

Try an eligibility checker to see if you can do better elsewhere. But if the 13% rate will put you under financial strain, it's probably about affordability.

£12k is a reasonable sum, depending on your income.

Gaz83

leighdancer wrote: »

I’ve just applied for a £12000 for a new van for my business. Yesterday I was told I have been excepted. Great I though. Today however I have had a email saying the apr is 13.90% APR when I applied it was 3.8%APR can anyone tell me if I can contest this? It’s put my monthly budget way over what I wanted to pay should have been £217/month but now £273.56/month they say it’s bacex on my credit score (990 I checked prior to applying) and affordabilty this is now making it more expensive and should I go ahead will put me under financial strain. Has anyone had any experience with this? Can anyone help? Credit score has now been reduced due to the application.
Thanks Leigh

If an extra £53 will "put you under financial strain", then it's no wonder you're not being given the headline rate.

leighdancer

Thanks to all who have responded. When I say financial strain I mean it’s just simply more than I budgeted for when applying as it was 3%APR. Just quite annoyed they can just dictate to you the rate. I am going to apply for another loan but thought the credit score would effect my second application. Thanks though

MallyGirl

A quick read on here will show that it is not about the score, it is about your credit history - do you have plenty of evidence that you pay on time or are there AP markers, late markers, CCJs. Affordability now comes into it too.

foxy-stoat

leighdancer wrote: »

Thanks to all who have responded. When I say financial strain I mean it’s just simply more than I budgeted for when applying as it was 3%APR. Just quite annoyed they can just dictate to you the rate. I am going to apply for another loan but thought the credit score would effect my second application. Thanks though

If only you would of read the writing on their web site, to be honest the rate could of been a lot worse:

The calculator is for illustrative purposes only. Santander Personal Loans are available over terms of 1 to 5 years. We will do a credit assessment when you apply and your personal circumstances may affect the rate we can offer you which may differ from the representative APR. The maximum APR we could offer you on any loan amount is 24.9%. Credit is available subject to status. We reserve the right to refuse any application and to refuse a loan for certain purposes. Information and rates correct as at 20.02.2019

Good news is that you dont have a credit score that the lenders see so apply to another lender and report back.

dresdendave

leighdancer wrote: »

Just quite annoyed they can just dictate to you the rate.

Out of interest (no pun intended), who do you think should be dictating the rate, if not the lender?

societys_child

Just quite annoyed they can just dictate to you the rate.

Erm, you want to borrow their money, who should set the rate? :huh:

jonesMUFCforever

Why apply for a personal loan when it is obvious you need a business one?