chrisdicko

iTrader: (21)

I always get the spam letters through the post and never really pay much attention, but today got one, and think it was something like 10.9%. A year or two ago I seem to remember it was around the 4.9-5.9% mark.

The Bank of England rate has gone really low, and so has my mortgage, so why hasn't personal loans? Or are the personal loans to high due to people mortgages etc being so low and the banks aren't making as much money?

Trout

iTrader: (1)

Unsecured personal loans are the riskiest form of debt for a bank so the higher rates compensate for higher defaults.

kingofturds

iTrader: (1)

So failed ceo's can still have their $69 million pay off

Bank of America loses $2.24B as loan losses rise - Yahoo! News

David Lock

Just before the "troubles" I asked Barclays for a loan (£45k), unsecured. I suggested 2% over base which they agreed to. So I am delighted to see base rate holding at 0.5% I also got a permanent credit card transfer at a fixed 5.99% which I thought was pretty good. dl

chrisdicko

iTrader: (21)

They always have been though, but why have the interest doubled in the last year when the interest rates have dropped so much?


It can't all be greedy CEO's surely, as people won't be able to afford an APR of 10.9% over 4.9% would they?

hodgy0_2

£31 Billion taken off the banks balance sheets in the form of bonus payments in the 2 years leading upto the crash


£25 Billion -- value of initial Government cash injection post crash

Ste RB5138

I would say the best rates nowadays are around the 8% Apr

dunx

iTrader: (3)

I'd rather pay a dealer 5.9% for a new hatch STI than pay the TSB 14.9% for anything.

Grumpy dunx

hodgy0_2

people with very low risk profiles will always get good rates

within the year they will get very very good rates

banks are building balance sheets and the only commodity they have to sell is money

soon they will have quite a bit

but the holy grail of "market share" will soon rear its head

stevebt

iTrader: (8)

I didn't think they were high?? I got a loan recentlyat about 0.5% more than what I paid for 7 years ago. That dosn't seem too bad to me ??

sti-04!!

Double check the paperwork

chrisdicko

iTrader: (21)

So there are low rate loans about then.

I'm not after one, it's just all the spam letters I get the APR is sky high, and I was wondering why that was really.

Trout

iTrader: (1)

They always have been AND with 2.5million headline unemployed there is a greater proportion of delinquency; and banks are not chasing market share.

Also spam letter rates will be higher than a tailored rate to the individual as the individual may get better credit scoring.

Hodgy - your assertion may be correct but was the £31 billion paid out mostly by banks who did not benefit from the £25 billion?

dunx

iTrader: (3)

Terminator X

iTrader: (7)

Double the flat rate(ish) to get rough guide to the APR. 5.9% is about 12% then so still OK vs the 15% mentioned above. Who the heck pays 15% though

TX.

PS

I don't really understand how it all works full stop - if I get charged 10% APR vs the BOE rate at 0.5% how & what are the banks making from me? How would that change if I was on 10% APR vs BOE rate of 5%

PPS

The wife got junk mail recently offering her a c card at 51% APR with a £15k credit limit!

stevebt

iTrader: (8)

So when does it arrive

mart360

As daft as it seems, i bought my last car on a credit card

looked around, and the best personal loan rate i could see was

7-8% ..

so i bought it on my main card, (but only for 3 days)

then did a balance transfer onto one of my unused cards, for a lifetime 6%

ok i got hit with a balance transfer fee, but i got it 2% lower than the banks..


Mart

Jimpreza

But if you paid 6% interset and a 2% transfer fee isn't that 8% so you were no better off?

Klaatu

To discourage you from borrowing. Just wait until after Copenhagen, *everything* will be discouraged. Simple.

EddScott

What is happening in Copenhagen?

Klaatu

Unelected politicans will decide that you, and me, and everyone in the west/developed countries, "owe" a pennance to the "developing" world, meaning, we must pay for our "sins", like beathing and, I dunno, living. In the Maldives, "officials", have signed some sort of "climate crap" 20 feet under water, when they are not under water, as some sort of "symbol" to the world that they are in danger and only western CO2 tax will save them.

And it will only get worse...although, it appears it is getting very cold up there.

mart360

the transfer fee was payed as a one off

so not paying for that over the course of the balance


Mart

Jerome

My gf has recently bought a little car. I can't remember the APR, but her bank would only offer her a 3 year deal on a £3k loan which meant repayments of £5.5k.

She instead got finance at the garage and is paying around £3600 over 2 years.

So her bank was £1.9k more expensive on a £3k loan. Daylight robbery.

As an aside, the garage said "It makes a change for someone to actually get approved for finance nowadays".

Klaatu

This sort of "free money" lead to the GFC, actually started just before the 1920's depression. Thanks Uncle Sam!

Jerome

Er, free money? Bank loans never used to be so expensive. Her credit cards would have been cheaper. The bank in question is in the Santander group - one of the few not hit by the GFC.

And, one of the main causes of the GFC was sub prime loans IIRC.