Post Office Home Improvement Loans
Good:
You can choose two months per year to have a payment break (interest still applies)
Bad:
Their loan process is very slow and you may not get straight answers when you call to ask about it
Verdict:
Take ages to process an application, some people saying they heard from them 4 weeks after applying - interest rate is similar to some of the banks but it's probably not worth it for the poor service and the long wait
Specialising in home improvement loans, they can offer between £2,000 and £25,000. The interest rate on their home improvements loans is reasonable, compared to other high street lenders, which you can have over 7 years. Bear in mind that Post Office can only lend up to 75% of your total annual income.
Their loans are "front-loaded" which either means the payments are bigger at the beginning of the loan period, or the interest is a larger percentage of each payment at the beginning, even though the payments are equal. If you wish to pay off a "front-loaded" loan early, it may end up costing you a lot more.
The application process is relatively simple and pretty similar to other lenders, you can apply online. Once you have completed their online application form, they will give you an instant provisional decision. If you are provisionally accepted, they will email you and they will then send the loan documents to you in the post which should arrive within 4 working days. Once you receive them, carefully read through them and sign the agreement. As soon as you have signed and returned all the documents (make sure you include any other documents they may request), they transfer the funds directly into your account which should take about 3 working days.
In principle, loans from the Post Office look affordable and are from a reputable company. However, the reviews would indicate otherwise. Many customers complain about having to wait around for long periods, not getting the initial APR quoted and poor customer service. If you are accepted make sure you check the APR stated on the loan agreement before you sign anything. With this in mind it might be worth looking elsewhere.
Loan Calculator (Representative 7.4%APR)
Loan Amount £
Loan Term months
Monthly Repayment
Total Repayment
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As yet little time spent with you but awaiting for loan of £15000 to be put in to my bank account as details as where sent to you, Hope to hear soon. Please send details in post of loan paper work so we can continue with loan. Thankyou
I RECIEVE 850.00 PER MONTH
I applied online 10 days ago for a secured personal flexible loan at 9.9%. They sent me an email on the day of my application, saying I would be contacted within 48 hours with a decision. Since then I have not heard from them. Everytime I call customer services, they say, "Sorry sir, your application is still with the underwriters, and there is no possible way of chasing it up with them.".
I applied for a personal loan with Post Office for some home improvements about 4 weeks ago. My loan application was accepted at once, then I was forced to jump through hoops in order to progress it any further. The funds were due to be in my account days ago, but every time I phone them they tell me 'definatley tomorrow'. Absolutely a complete waste of time and money ! Do people really get employed to provide this disgraceful level of service ? Apparently so .. don't bother wasting a month of your' life. Find another company.
Loans up to £25,000 - 7 years
- You need: your employer's address, 3 years address history, bank details and incoming/outgoings details
- You must have a good credit history
- You must have been a UK resident for three years or longer
- You cannot have any CCJ's registered against you
- You must have a bank account or building society account
- You must be earning a minimum of £8,000 per year
- You must be 21 years of age or older to apply
- You must have always managed previous credit commitments well
- Direct Debit fails - Your bank will charge you this fee
- They do not charge a fee but because the loan is "front-loaded", it may work out more expensive to pay it back early
- None – if you think you are going to miss a payment you need to call them to sort out a different date for payment
