Cheap Loans: How to get your lowest possible rate Discussion Area

edited 20 May 2014 at 6:33PM in Loans
44 replies 85.6K views
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  • urshursh Forumite
    4 Posts
    Hi guys,

    My situation is quite complex, i bought a flat with a good friend of mine, however I got into a bit of money troubles and ended up with 4 credit cards and struggled to pay them off each month, after discussing with her I consolidated them into 1 secured loan with Northern Rock - my friend agreed to this as a short term messure to get the amount down so I could apply for a personal loan and then take her name off my debt.

    We have since moved out and are renting our flat to tennants (no bad feelings or anything)

    I have now got my loan down to 12k and am finding it really hard to get a personal loan, I would like to get one to pay over 5 years @ £250 per month but have been declined by 2 companies 6 mths ago, I am in the process of getting my credit rating checked.

    Any advice?? :(
  • kilasuitkilasuit Forumite
    645 Posts
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    ✭✭
    Update to the thread is needed as Santander have changed their APR's 14.9% from £1000 -> £2950 11.9% for £3000 -> £4950 and 8.9% for £5000 -> £20000

    Hope this helps

    Linky http://www.santander.co.uk/csgs/Satellite?canal=CABBEYCOM&cid=1210621686801&cidAgrup=845616358929450&empr=Abbeycom&leng=en_GB&pagename=Abbeycom/Page/WC_ACOM_TemplateW2&posSel=1
  • oioi All, I am looking for some advice about getting a new loan. We currently have a loan with the HSBC, which we are just about over half way through paying off.
    I am disabled and unable to work and my wife is my carera we now need to add a stair lift, and alter the house again too give me a better quality of life.
    due to i worked from when i was 16 and have a works pension i dont get much help with things like this. we have gone back to the bank but its way over what we pay now.
    I have tried Tesco, who had they given me the loan it would have been cheaper than what we pay now with the extra 5000.
    But due to me being disabled and not working they have refused me.

    do any members know of lenders that lend to none working disabled peeps,
    many thankls in advance jonj0e.............
  • hi i want to get a 10k loan but with early repayment option with no payment penalty for early repayment, had one a few years back with northrn rock but i dont kow how to go about finding one, any one with any ideas
  • Hi guys,

    I recently aplied for a loan thorugh HSBC (my bank) advertised at 7.5%. I was accepted for the credit, but was offered the loan at 8.9% instead.

    I have seen a number of other banks offering around 6.9 - 7.4%

    My question is, which Banks are more likely to offer me the rate advertised on MoneySavingExpert/MoneySupermarket.com?

    Marks & Sparks (6.9%)
    Platinum Loans (7.1)
    A&L (7.1)
    Sainsburys (7.2)
    Nationwide (7.3)
    Santander (7.3)
    Tesco (7.4)

    Any opinion on the above would be appreciated, I seem to be just going round and round in circles. No-one will give me an answer until I actually apply for the credit.
  • malc_bmalc_b Forumite
    1.1K Posts
    Part of the Furniture 500 Posts
    ✭✭✭
    Martin's page on loans mentions Zopa but doesn't mention ratesetter (or for small businesses funding circle). Ratesetter could be worth a look (and adding to the page?) as they have flexible rolling loans as well as 3yr loan. A flexible rolling loan looks to have benefits of credit card with lower costs.
  • margaretkbmargaretkb Forumite
    40 Posts
    Part of the Furniture 10 Posts Combo Breaker
    Hi
    I have considered sorting my debts out using a dmp but it's a long story(involving not wanting to close my current account with my bank which i would have to do - it's complicated) so have exhausted all other avenues and wondered how I can get a loan (NOT secured) to pay off debts of £16,000 (5 credit cards and 2 store cards).It was all going so well and I have never missed a payment but then MBNA and MINT increased their charges, I didn't ask them to reduce and now I am struggling. I have never used any of the credit cards (until a few weeks ago used 1 to get me by) I just them for balance transfer deals.

    The problem is that after working all my life I am now a mature, stay at home mum - sadly my partner does not know about the debts and at this moment in time I cannot tell him (believe me I have gone over and over this in my head and trust me I cannot tell him). My 'wage' is money transferred over from him every month - so my poor partner is now paying off these debts (without his knowledge). My credit rating is now'satisfactory' on Experian - has always been 'excellent' but the main problem i think is that I am not working. Has anyone here had an unsecured loan as a homemaker? Am grateful for any responses
  • Nona wrote: »
    I wanted to borrow some funds and after looking at Martin's guide for amounts over £5000, I went for Barclays at 7.8%.

    I went through Martins checklist of questions and came up with a good score...so I applied. I was accepted and I was shown on the net that my payments over 3 years would be £249/month at 7.8%. However, when the paperwork came through it showed me paying £303/month at 23.8%!!

    I queried this with Barclays and they said that their interest rates start at 7.8%...but it's then up to the discretion of the bank to offer whatever rate they think is applicable. When I said that I'd printed the online quote showing the £249/month amount, they merely said that wasn't binding.
    What's the point of agreeing an amount online...and then having it changed when the paperwork comes through?

    What makes it worse is that all my existing accounts (including my business account and business savings) are with Barclays!


    our of curiosity, after agreed online did that mean you had to take the loan or could you still pull out by not signing the paperwork ect?
  • YIB wrote: »
    Hi everyone,

    This is a really simple question I just can't seem to find the answer to! I don't know where else to ask lol

    Basically, how do you know how soon you need to start paying back the loan? Is it right away or do you get a few months before you have to make the first repayment?

    Thanks!

    Usually, you start paying the following month unless they have agreed to give you a payment holiday of another month. If you look carefully at the loan papers, it should tell you the date of the first payment. On page one, where they tell you how much you'll have to pay. You could go back and ask them. It is a bit important if they are going to take out a substantial Direct Debit from your account.

    Motor Insurance sometimes takes a large deposit from you, then it takes a while to set up the DD, so you don't pay until another month has gone by. So you pay your deposit at the end of January, and your first payment is in March.

    If you have taken the loan out on a year's free interest, where you don't start paying for a year, you will save as much as you can before you need to start paying then you will have the option of settlement when they write to remind you that your payments are about to start. I have bought things on this basis, which gives you time to save the purchase money.

    I hope this helps.
  • margaretkb wrote: »
    Hi
    I have considered sorting my debts out using a dmp but it's a long story(involving not wanting to close my current account with my bank which i would have to do - it's complicated) so have exhausted all other avenues and wondered how I can get a loan (NOT secured) to pay off debts of £16,000 (5 credit cards and 2 store cards).It was all going so well and I have never missed a payment but then MBNA and MINT increased their charges, I didn't ask them to reduce and now I am struggling. I have never used any of the credit cards (until a few weeks ago used 1 to get me by) I just them for balance transfer deals.

    The problem is that after working all my life I am now a mature, stay at home mum - sadly my partner does not know about the debts and at this moment in time I cannot tell him (believe me I have gone over and over this in my head and trust me I cannot tell him). My 'wage' is money transferred over from him every month - so my poor partner is now paying off these debts (without his knowledge). My credit rating is now'satisfactory' on Experian - has always been 'excellent' but the main problem i think is that I am not working. Has anyone here had an unsecured loan as a homemaker? Am grateful for any responses

    You could ask your existing banker for advice, or trying a Balance transfer 0% card, that might help, or be aware that you will have to change to another before you have finished paying it off. Otherwise, home making may not be all it's cracked up to be, and a part-time job may give you more credit worthiness or at least keep up with a higher payback rate. Just don't accept a working from home contract unless it pays something really useful. Often they are extortionate.
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