refinance loan, eligibility checker

ollie_ursus

Hi All.


In have a Loan for £13100 that is on a high interest rate. I had a problem with being over committed and about 18 months back I took a loan with my own bank (Halifax) at 13.7%APR. I took the loan as my debt was credit card debt and I had no room to tart the balances and the interest was astronomical (27% APR)


My debt situation has totally changed, I have managed to pay off quite a large amount of debt. I have this loan and credit cards that are now 0% for the remaining 12k. They are on long balance transfer offers so I don't need to think about those for a while.


I have done a couple of soft search 'see the rates you could get' type affairs and I'm getting 90% probability with the post office and a couple of other lenders.


My question is, how accurate are these probabilities? I obviously want to avoid doing more than 1 search if possible and was after peoples experiences.


For more background. My clear score is 445, I have NEVER missed a payment in my life. I am a home owner albeit recent (Jan) I earn £45000 gross.


I wish to replace the loan with a low rate 3/4%APR loan, I like the finality of the loan, it has an end date and is long term lending. I can afford to reduce the term by a year if I can secure the low rates.


I look forward to hearing from you and your experiences.


Many thanks,


Ollie.

[Deleted User]

The estimates are rough. Your credit score is meaningless.

One or two searches won't be an issue if you have a well managed file. But your existing debt will be the problem, with 25k already, plus whatever you want on the new loan.

Bear in mind that consolidation rates are always high as the risk is much greater.

foxy-stoat

Go for 1 application and see what rate you will be offered. Doubt you will get the lowest rate for paying existing debt but you can only try.

ollie_ursus

foxy-stoat wrote: »

Go for 1 application and see what rate you will be offered. Doubt you will get the lowest rate for paying existing debt but you can only try.

Thanks for the reply!


Would me putting the reason for the loan as something else increase or decrease the chances?


I assumed that if they knew it was going on debt that it would increase my odds of acceptance as chances are the total amount of debt I would have would remain the same as apposed to increase. Am I way off?

ollie_ursus

foxy-stoat wrote: »

Go for 1 application and see what rate you will be offered. Doubt you will get the lowest rate for paying existing debt but you can only try.

Thanks for the reply! and excellent name


I was told every search will make a dent, I'm guessing only minor dents unless I start doing 3 or more?

foxy-stoat

ollie_ursus wrote: »

Would me putting the reason for the loan as something else increase or decrease the chances?

I assumed that if they knew it was going on debt that it would increase my odds of acceptance as chances are the total amount of debt I would have would remain the same as apposed to increase. Am I way off?

Lie if you want to on the application, some folk on here will outcast you and have you get a tattoo on your forehead for evermore as a fraudster. For me as long as the debt is paid and you don't end up in twice the debt with no hope of getting out without an IVA or BR then you may get into trouble.

They will assess you with new and old debt anyway even if you put it down as debt consolidation.

Report back with what you get offered.