GO VERY CAREFUL!  As noted above others have had similar experiences. Basically Cahoot reel customers in with a low APR advertised. This is not an introductory rate but what appears to be ongoing.  My rate increased from 6.9% to 14.9% in one swoop!!! An effective increase of 216% on the cost of borrowing.

The terms and conditions allow them to increase the rate for almost any business reason.

I complained to Cahoot on May 2007. I escalated the complaint to Abbey. I had to write 3 letters before they acknowledged my complaint. All attempts to state how unfair this was have been ignored.

Considering the moto "treating customers fairly" as bounded around by the FSA, what I have encountered is Abbey/Cahoot reeling customers in with attractive rates before applying massive hikes on APR rates!

This is very similar to practices of 'loan sharks', by one of the largest banks!  I have over 5 years complaint handling experience within financial services including Abbey contracts and I rarely get caught out. However, this time Abbey have really hit me below the belt and a whole lot of other customers no doubt.

I am now complaining to the Ombudsman.  Failing that a letter to the FSA. At least by complaining to the Ombudsman Abbey will have to pay £300 in a fee towards the investigation if the Ombudsman service are able to look at such loans. I myself am not certain of this as have been dealing with different products.

Please be very careful! Use a reputable company like Nationwide or take a fixed rate loan.

Since the hike I was made redundant and subsequently now self employed for less than a year so any chance of me obtaining a decent rate are narrow, but if anyone has any suggestions, I'd be happy to hear from you.