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Northern Rock
Hi
I currently have a Northern Rock Personal Loan, my agreement reads.
Loan Amount:£7000
Payment Protection:£818.09
Amount of Credit:£7818.09
Charge for Credit:£837.75
Total Payable:£8655.84
Annual Percentage Rate:APR6.9%
36 Months @ £240.44
I have made four payments so far.
1)is it worth cancelling the payment protection?
2)am I allowed too?
3)can/could I restart the payment at any time if cancelled?
Also I have a good credit rating, well goodish, is there a way I could perhaps improve the loan, maybe a different one?
Thanks for all your times.
I currently have a Northern Rock Personal Loan, my agreement reads.
Loan Amount:£7000
Payment Protection:£818.09
Amount of Credit:£7818.09
Charge for Credit:£837.75
Total Payable:£8655.84
Annual Percentage Rate:APR6.9%
36 Months @ £240.44
I have made four payments so far.
1)is it worth cancelling the payment protection?
2)am I allowed too?
3)can/could I restart the payment at any time if cancelled?
Also I have a good credit rating, well goodish, is there a way I could perhaps improve the loan, maybe a different one?
Thanks for all your times.
0
Comments
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You can try to cancel the payment protection, but NR don't have to allow it. They sent you an agreement, you signed it. This means that they offered you payment protection and you accepted it.
Normally, lenders will cancel this loan and allow you to take out a new loan to pay off the old one. The APR is quite good. There are others a bit lower, but you may not get the lower rate.
Why not ask NR and see what they say?Warning ..... I'm a peri-menopausal axe-wielding maniac
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Debt_Free_Chick wrote:You can try to cancel the payment protection, but NR don't have to allow it. They sent you an agreement, you signed it. This means that they offered you payment protection and you accepted it.
Normally, lenders will cancel this loan and allow you to take out a new loan to pay off the old one. The APR is quite good. There are others a bit lower, but you may not get the lower rate.
Why not ask NR and see what they say?
gave them a call and they said I can take on/off the payment protection whenever I wanted, however the lady said that this is done by rescheduling the loan each time,which I am assuming is having a new loan each time.....wont do my credit rating any good!0 -
What a load of rubbish NR have told you there IMHO. You are fully entitled to take off your PPI at anytime, they may require a month's notice, but to say that you may need to take out a new loan just to cancel your PPI has to wrong.
Ring em up and tell them you want to cancel your PPI and see what happens.
NR are pretty good for loans though as they don't have any early repayment charges should you wish to pay it off quicker.0 -
I agree - call them up and ask to cancel your PPI.
If they don't have an early repayment charge wouldn't it be cheaper for you to transfer these to 0% credit cards and keep juggling these until the debt is paid off. You could keep paying £240.44 a month on these rather than the minimum, switching to another card once every 6 months effectively treating the debt like moving loan but without interest thus paying off the loan much faster.Just had an email saying press release. Can someone tell me where the release key is?
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humbug wrote:I agree - call them up and ask to cancel your PPI.
If they don't have an early repayment charge wouldn't it be cheaper for you to transfer these to 0% credit cards and keep juggling these until the debt is paid off. You could keep paying £240.44 a month on these rather than the minimum, switching to another card once every 6 months effectively treating the debt like moving loan but without interest thus paying off the loan much faster.
As long as you can keep getting 0% cards every six months - this cannot be counted on.
Maybe a 3.9% life of balance (Texaco) card would be better? If you can get a high enough limit. I only got £2.5k and earn over £30k a year, but I did have quite a lot of other cards (stoozing). Partner got £10k limit (with £50K wages). He had a few other cards too.I'm married now! Yippee!0 -
humbug wrote:I agree - call them up and ask to cancel your PPI.
If they don't have an early repayment charge wouldn't it be cheaper for you to transfer these to 0% credit cards and keep juggling these until the debt is paid off. You could keep paying £240.44 a month on these rather than the minimum, switching to another card once every 6 months effectively treating the debt like moving loan but without interest thus paying off the loan much faster.
I got my total balance if I was to pay off today, which is £6500 just over.
Would I get credit cards to fund this? I have one credit card through egg, they only gave me £750 limit.....how many credit cards would I need to pay off £6500! Or can you recommend a credit card that may give me a big limit?
cheers0 -
Hang on.
Looking at your first post, did NR *lend* you the money for the PPI? In that case check your terms and conditions to see if cancelling actually saves you money. It will *probably* only get you a rebate on the extra amount they lent you, but you might not even get that.
Just to clarify.
Did you borrow 7,000 then insure it at a cost of 818
OR
Did you borrow 7818 and it was insured.
Regards
XXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
Xbigman wrote:Hang on.
Looking at your first post, did NR *lend* you the money for the PPI? In that case check your terms and conditions to see if cancelling actually saves you money. It will *probably* only get you a rebate on the extra amount they lent you, but you might not even get that.
Just to clarify.
Did you borrow 7,000 then insure it at a cost of 818
OR
Did you borrow 7818 and it was insured.
Regards
X
I borrowed £7000 and then they gave me £818 for insurance.....there is nothing in the terms and conditions.....0 -
Sorry if I've not been clear.
Some loan companies lend you a sum of money (in your case 7000) and then *lend* you the cost of insurance on top (818). So you actually have a loan for 7818 from day one. It is quite often not clear that they have done this.
This means you have paid for the insurance out right. If you cancel now it won't mean you get back £818. You will more than likely get a rebate on the insurance. This could be a lot or very little, depending on the insurance companies rules.
The danger is that you will cancel the insurance and still owe 818 plus interest. Thus saving nothing.
This is very common practice and it is why PPI is so profitable.
Most people assume that it works differently and that part of your monthly loan payment is some kind of insurance premium. They also assume if they cancel the insurance the loan payments will drop. This isn't the case.
Its worth checking. When you ask if you can cancel the insurance also ask how much the repayments will go down to. That will settle it.
Regards
XXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
Xbigman wrote:Sorry if I've not been clear.
Some loan companies lend you a sum of money (in your case 7000) and then *lend* you the cost of insurance on top (818). So you actually have a loan for 7818 from day one. It is quite often not clear that they have done this.
This means you have paid for the insurance out right. If you cancel now it won't mean you get back £818. You will more than likely get a rebate on the insurance. This could be a lot or very little, depending on the insurance companies rules.
The danger is that you will cancel the insurance and still owe 818 plus interest. Thus saving nothing.
This is very common practice and it is why PPI is so profitable.
Most people assume that it works differently and that part of your monthly loan payment is some kind of insurance premium. They also assume if they cancel the insurance the loan payments will drop. This isn't the case.
Its worth checking. When you ask if you can cancel the insurance also ask how much the repayments will go down to. That will settle it.
Regards
X
excuse the late reply.....today I eventually got round to giving Northern Rock a call, I stated to customer services I wanted to cancel my PPI.....no problem....however I asked how much it would bring my payments down.....the lady then said she couldn't tell me and had to transfer me to another department.....what department I don't know....however the new lady on the other end was really unpleasant...she said I would have to take another loan/reschedule....and would be offered a different interest rate.....poo......I accepted defeat and the payments plus PPI are still inplace.....could she of been telling me porkies?
cheers0
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