Santander loan high interest rate

kiwijoy

Hello, I have a Santander loan which is £2250 over a period of two years. When I applied the interest rate being advertised was 17% but I'm actually paying 24.9%! Can anyone advise me on why it's so high? I've been with santander for twenty years but also have had two previous loans with them.  I have never missed a payment or paid late for any of them and I work full time and have been in my job and at the same residence for a decade. How can I be a risk to lend to? Is there anything I can do about reducing the interest?

Dazed_and_C0nfused

Shop around before signing up with anyone.

Sometimes it can actually be cheaper to borrow a slightly larger amount if it tips you into a reduced interest rate.

Sncjw

Because the rate advertised was re0resentivte rate. You won't know the actual rate until you apply for it. 

Its based on factors such as current debt, past credit history, income. And othe things 

Pixie5740

kiwijoy said:

Hello, I have a Santander loan which is £2250 over a period of two years. When I applied the interest rate being advertised was 17% but I'm actually paying 24.9%! Can anyone advise me on why it's so high? I've been with santander for twenty years but also have had two previous loans with them.  I have never missed a payment or paid late for any of them and I work full time and have been in my job and at the same residence for a decade. How can I be a risk to lend to? Is there anything I can do about reducing the interest?

The representative rate advertised was 17% APR which is the rate given to 51% of successful applicants.  You are one of the 49%.

It might not just be that Santander see you as risky.  All kinds of things are taken into account when banks lend money.  It could be as simple as Santander knowing you will take the loan from them regardless of the rate being offered.  No one here has access to Santander's lending risk algorithms or your financial history so we are just guessing.

The more pertinent questions are why are you borrowing £2250 in the first place and is a loan the least expensive way of borrowing that amount?