Interest Rates 5 Years 8.9%**6 Years 14.4% ?

[GinAndPlatonic]

I have just been checking out interest rates on loans offered to me supposedly pre approved, by Barclays.

I have a good credit record. I really do not want a loan but was curious what is on offer.

£15k over 5 years 310.87 per month. Total £18,652.20 at 8.9%

£15k over 6 years 306.36 per month. total £22,057.92 at 14.4%

Why the jump up to 14.4% ? do Barclays have a good idea when interest rates are likely to rise, or is this normal practise in regards to differing interest rates and periods.?

I know loans can probably be taken cheaper elswhere...it`s just that rate jump that caught my eye.

Edited November 21, 2010 by GinAndPlatonic

[General Congreve]

I have just been checking out interest rates on loans offered to me supposedly pre approved, by Barclays.

I have a good credit record. I really do not want a loan but was curious what is on offer.

£15k over 5 years 310.87 per month. Total £18,652.20 at 8.9%

£15k over 6 years 306.36 per month. total £22,057.92 at 14.4%

Why the jump up to 14.4% ? do Barclays have a good idea when interest rates are likely to rise, or is this normal practise in regards to differing interest rates and periods.?

I know loans can probably be taken cheaper elswhere...it`s just that rate jump that caught my eye.

Only two mortgage providers offering 10 year fixed mortgages now, all others are max 5 years. They've got a good idea what's coming and they sure as hell aren't going to let savvy members of the public rob them blind.

[lal]

i think no one knows what the hell will happen after next year... we will see weak growth next year with Portugal, and possible Spain going under... infact, i could see Sweden, Hungary and Latvia all going under too... but if Spain goes... Europe goes.... and we will in all likelihood enter the next depression.

The 14.4% is because its quite a long time... the risk factors over this governments time are huge... heaven forbid you loose your job or something - whatever your using the cash for is likely not to have significant value then (e.g. Car) and your home (if you own one) will be taken by the mortgage you have....

Scary times my friend.