Huge APR increase on Personal Loan quote from bank recently
Discussion
I am shortly moving into a new property in the next few weeks, and was investigating a personal loan with my bank (Lloyds) for some improvements, before Christmas... it's not necessary to take a loan in terms of funds available to me, but out of interest I was monitoring quick quotes in Oct/Nov/Dec...
I've just checked again and on a loan of £25k they have raised their indicative interest rate from 2/3.something% over 60 months to 11%+?!!!
I know there are some iffy times predicted, and BoE rates are predicted in the medium term to rise, but WTF? Perhaps they are changing their risk profile?
Absolutely nothing has changed on my credit file (if anything it's got better,) and I have nearly zero borrowing (same as before.)
Anyone else noticed the same?
I'm just thinking maybe they are looking at some serious splurging from my current account over Christamas/NY?!
I've just checked again and on a loan of £25k they have raised their indicative interest rate from 2/3.something% over 60 months to 11%+?!!!
I know there are some iffy times predicted, and BoE rates are predicted in the medium term to rise, but WTF? Perhaps they are changing their risk profile?
Absolutely nothing has changed on my credit file (if anything it's got better,) and I have nearly zero borrowing (same as before.)
Anyone else noticed the same?
I'm just thinking maybe they are looking at some serious splurging from my current account over Christamas/NY?!
Edited by PopsandBangs on Monday 24th January 19:28
Edited by PopsandBangs on Monday 24th January 19:30
p4cks said:
If you have two loan (or credit card) searches in a short space of time it can have an impact on the interest rate you get.
Have made sure not to have any soft or hard searches recorded in my investigation of this.... it's purely their indicative rate to me, as a near 20 year current account customer! 
Indeed they keep throwing up Personal Loan offers when I log in to Internet Banking and also via email....
Just can't understand the disparity in rates since 6-8 weeks ago...
Geffg said:
When I recently looked how much a loan would cost with Lloyds who I’ve banked with for 30yrs and never had any issues getting a loan before, it says chance of approval is unlikely. Yet on the app they’ve now got a credit score section and according to that my score is amazing.
Weird!Iv'e got near enough 3 times the loan amount I asked for a quote for sitting in that current account, and have done for a few months now... I can only assume their automated quoting has looked at my spending over Dec/Jan which has been more than what went in, and twice the usual outgoings over the last year month to month?
Edit to add, their "chance of approval" tool you mentioned says i'm "likely" based on all amounts and timescales....
Edited by PopsandBangs on Monday 24th January 19:51
IIRC they have to offer the headline rate to at least 51% of customers. So its possible in the mean time they have written a lot of loans and now don't have to offer the headline?
I suspect risk does not really come into it - they sell a load of cheap loans and then offer higher rates in the hope people might just say oh well and go with it. I am guessing here!
I suspect risk does not really come into it - they sell a load of cheap loans and then offer higher rates in the hope people might just say oh well and go with it. I am guessing here!
Is the new property a house you took on a mortgage, or will it be a rental property? Let me find out why you need a loan from your bank? I believe that a financial consultant can help you with such questions. For example, when I wanted to take out a mortgage on a house, I didn't know what I needed to do for this. My aunt helped me with this. She sent me a message with the contact details of Mortgage Advisor Nottingham. I made an appointment with this specialist for a consultation a week after her message. After talking with this advisor, it became easier for me to navigate mortgage and loan issues. Now I live in a two-story house that has taken on a mortgage for 15 years.
Edited by kennagedye on Monday 25th April 12:52
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