This is slightly out of the norm to charge a higher rate for a higher amout - normally rates decrease.

Are you sure nothing has changed on your credit rating since you took out the first Loan?

It could be the fact he already has two loans and a credit card? They may feel he is borrowing more and more and thus class him as a higher risk than someone who is paying off their borrowing.

Hi, My partner has a loan with Abbey at 5.7% APR. Recently they wrote to him offering a top up to £20K at a typicl APR of 6.1%. When he phoned them they said that was ok and took him through all the application process. The loan was agreed but at 14.9% APR. We checked our credit score etc and it's excellent. He has a mortgage, two personal loans and a credit card, all of which show exemplary payment history. Has anyone got any ideas about why this ridiculous interest rate was offered, especially as he already has a loan with them and they wrote inviting him to top up? Thanks.