Offered rubbish interest rate with Sainsbury's - Advice?

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  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    ratrace wrote: »
    I find it bizzare i really do, car is on last legs so let go spend 15k which we dont have on a car and then complian about that we have been offerd 2 - 3% more than we thought

    Got that all wrong... 1.4% more than the headline rate....THEN complain that its rubbish!

    I thought it was quite a good rate bearing in mind that the lowest headline rate is not achievable to 49% of the applicants.
  • dont_use_vistaprint
    dont_use_vistaprint Posts: 601 Forumite
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    I got the Nectar rate of 2.6 recently for 18-months bridging. They are really good IMO, a little slow with manual paperwork etc about 14 days from initial application to deposit and they do place some caps on over and early repayment, so lend the absolute minimum you need
    "It is not the critic who counts..." - Theodore Roosevelt
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    uvarvu wrote: »
    Haha I wish!

    I only want to consolidate the existing car loan and not the cards as their interest free periods are okay and they'll be paid off in time.

    The existing car loan is 5K. If I borrow 20K I can consolidate that and use the remaining 15K to purchase a replacement car for my wife as hers is on its last legs. What I was hoping was that there would be little to no increase in my monthly outgoings but the 4.2 rate changes that. Do you think I can get a better rate if I pay a load off the cards ASAP and then try for another loan in the new year?


    How is the lender to know that.


    Jeez its 4.2%, its still a good rate, why are you applying now if you don't need it until Feb of next year.


    Your not the lender so you need to realise Sainsbury's can offer a higher rate if they choose to.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,644 Ambassador
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    I think that is a good rate for unsecured. Personally though I would not pay £15k on a car if you don't have anything to put towards it. What I find bizarre is someone on £165k cannot manage to buy a car without borrowing.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    enthusiasticsaver wrote: »
    I think that is a good rate for unsecured. Personally though I would not pay £15k on a car if you don't have anything to put towards it. What I find bizarre is someone on £165k cannot manage to buy a car without borrowing.


    Where the donald duck did the OP say they were on £165Ka year - I think the other posted took the total debt figure rather than the total monthly repayment figure.
  • Niv
    Niv Posts: 2,471 Forumite
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    foxy-stoat wrote: »
    Where the donald duck did the OP say they were on £165Ka year - I think the other posted took the total debt figure rather than the total monthly repayment figure.


    It was calculated be another poster using information provided by the OP in post 4.
    YNWA

    Target: Mortgage free by 58.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Niv wrote: »
    It was calculated be another poster using information provided by the OP in post 4.


    Incorrectly calculated I think
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,644 Ambassador
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    OP said the total debt of car loan £20k plus credit card debt of approx. £6k would total 16% of his annual salary. This comes to approx. £165k
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,644 Ambassador
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    uvarvu wrote: »
    Adding the car debt to the rest of the cards works out to around 16% of my annual income.
    foxy-stoat wrote: »
    Where the donald duck did the OP say they were on £165Ka year - I think the other posted took the total debt figure rather than the total monthly repayment figure.

    The OP himself said the debt amounts to 16% of his annual income. No mention of monthly repayments being 16% which would seem more manageable. My concern was though that someone on that level of income needs to borrow to buy a car.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • uvarvu
    uvarvu Posts: 7 Forumite
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    Yeah 16% of my annual income is correct. The problem is that I have a lot of outgoings, for example £1700 a month on mortgages alone and then there's nursery costs etc so there isn't much left over.

    I called Sainsbury's just before Christmas withdrew my loan application as I don't need it after all.
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