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  • FIRST POST
    • Mell60
    • By Mell60 30th Sep 17, 11:34 AM
    • 12Posts
    • 1Thanks
    Mell60
    TSB loan
    • #1
    • 30th Sep 17, 11:34 AM
    TSB loan 30th Sep 17 at 11:34 AM
    Hi,

    Ive applied for a TSB loan for 2.9 but got offered 3.9% is this a good rate? This is the first loan I have applied for. No debit, mortgage nearly paid off. The loan is for £14k over 60 months. I will be able to pay it off after 36 months as I will have my pension lump sum. I noticed that I will have to pay 58 days interest if I pay it off, will this be on the full outstanding balance? I would like to pay as little interest as possible. Any advice would be greatly appreciated, thank you..
Page 1
    • zx81
    • By zx81 30th Sep 17, 12:50 PM
    • 14,331 Posts
    • 15,095 Thanks
    zx81
    • #2
    • 30th Sep 17, 12:50 PM
    • #2
    • 30th Sep 17, 12:50 PM
    It's a good rate if that's the best rate you can get, and not a terrible rate if it's not.

    Yes, the 58 days interest will be on the remaining balance.
    • Mell60
    • By Mell60 30th Sep 17, 1:48 PM
    • 12 Posts
    • 1 Thanks
    Mell60
    • #3
    • 30th Sep 17, 1:48 PM
    • #3
    • 30th Sep 17, 1:48 PM
    Thank you for response. I haven't tried anywhere else. I've read up on 51% of getting the premium rate and the 49% not, I thought they would all be around the same or more.

    I've seen on here some much higher rates so I guess it's a good deal.

    Does anyone know if I made a couple of over payments after 36 kill months and left a balance of £1 I would only pay 58 days interested on this? I've been looking at other threads and it seams possible but I'm not sure if TSB would allow it?
    • Mell60
    • By Mell60 30th Sep 17, 1:56 PM
    • 12 Posts
    • 1 Thanks
    Mell60
    • #4
    • 30th Sep 17, 1:56 PM
    • #4
    • 30th Sep 17, 1:56 PM
    Thank you for you response. Do you know if I made a couple of large overpayments after 36 months and just left £1 balance TSB would just charge me 58 days on that, or does that make no difference?

    I have read a couple of other threads were this seems possible but that was a while ago and it seemed a bit of hit and miss with where you got you loan from
    • nic_c
    • By nic_c 30th Sep 17, 2:28 PM
    • 1,120 Posts
    • 638 Thanks
    nic_c
    • #5
    • 30th Sep 17, 2:28 PM
    • #5
    • 30th Sep 17, 2:28 PM
    Have you checked if they allow over payments. You can ask for full settlement figure and partial settlement figure should you wish to, but I don't think paying all but £1 will avoid the interest penalty. You could also then compare that to keeping the loan going and drip feeding it from a savings a/c e.g. some accounts offer up to 5%.
    • Mell60
    • By Mell60 30th Sep 17, 2:52 PM
    • 12 Posts
    • 1 Thanks
    Mell60
    • #6
    • 30th Sep 17, 2:52 PM
    • #6
    • 30th Sep 17, 2:52 PM
    Thank you for your response. Yes you can make over payments.

    I had note thought of keeping the loan going and drip feeding
    • zippygeorgeandben
    • By zippygeorgeandben 30th Sep 17, 2:58 PM
    • 717 Posts
    • 899 Thanks
    zippygeorgeandben
    • #7
    • 30th Sep 17, 2:58 PM
    • #7
    • 30th Sep 17, 2:58 PM
    That sounds like a reasonable APR to me.
    End Sep 2016 End Nov 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2470.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £933.36 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3403.40 Original DFD May 2019.
    • StopIt
    • By StopIt 2nd Oct 17, 10:16 AM
    • 1,449 Posts
    • 1,237 Thanks
    StopIt
    • #8
    • 2nd Oct 17, 10:16 AM
    • #8
    • 2nd Oct 17, 10:16 AM
    To be honest, 10 years ago you'd have bitten the lenders hand off.


    Take it, overpay as planned and the interest you'll actually end up paying will be minimal.
    • Jaglad111
    • By Jaglad111 2nd Oct 17, 3:14 PM
    • 142 Posts
    • 203 Thanks
    Jaglad111
    • #9
    • 2nd Oct 17, 3:14 PM
    • #9
    • 2nd Oct 17, 3:14 PM
    That rate is lower than my mortgage rate, I'd take it and be very happy. Also note that the impending interest rate rise means the 2.9% will soon be in the 3's anyway.
    • PeacefulWaters
    • By PeacefulWaters 2nd Oct 17, 5:00 PM
    • 7,278 Posts
    • 9,003 Thanks
    PeacefulWaters
    That rate is lower than my mortgage rate, I'd take it and be very happy. Also note that the impending interest rate rise means the 2.9% will soon be in the 3's anyway.
    Originally posted by Jaglad111
    Impending? Or years off?

    http://www.bbc.co.uk/news/business-41141453
    • StopIt
    • By StopIt 3rd Oct 17, 8:16 AM
    • 1,449 Posts
    • 1,237 Thanks
    StopIt
    Originally posted by PeacefulWaters

    Or "Relatively near term"? Straight from the horses' (The BoE Governor himself) mouth.


    http://www.bbc.co.uk/news/business-41439349


    The fact is, they'll go up at some point. There's reports of multiple mortgage lenders upping their rates already. It'll only be a 0.25% rise, but even then, if you can get decent rates now, it's a risk to wait.
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