Sainbury's Loan - £15000

Staciep88

Afternoon everyone,

Last week I posted a message on advice for getting a loan for £25,000 for a static caravan.

I have now found one that we like for £12,995 + £600 delivery. Thought if we were to borrow £15,000 this would leave £1,400 to re-carpet and a few other bits we would like to do.

Sainsburys are offering a good deal of 7.7% and no repayments for 3 months. Has anyone had any experience with a Sainsburys loan? Or could anyone recommend a good company?

Thanks

Yorkshire-lad400

I believe, and you would need to check on this, that Sainsbury's front-load all the interest on their loans - so the moment you took the loan you would owe the £15000 +interest at 7.7% calculated over the entire period of the loan - this means that, should you wish to, overpaying the loan would have little or no benefit.
I currently have a flexible LloydsTSB loan where interest is calculated daily on the capital sum remaining which has allowed me to save interest charges by overpayment.

CLAPTON

Yorkshire-lad400 wrote: »

I believe, and you would need to check on this, that Sainsbury's front-load all the interest on their loans - so the moment you took the loan you would owe the £15000 +interest at 7.7% calculated over the entire period of the loan - this means that, should you wish to, overpaying the loan would have little or no benefit.
I currently have a flexible LloydsTSB loan where interest is calculated daily on the capital sum remaining which has allowed me to save interest charges by overpayment.

This would quite illegal and I would very much doubt that any licensed lender (let alone Sainsbury ) would behavour thus.
Of course, more interest is indeed charged at the beginning /early stages of a loan because more money is owed .... exactly like a mortgage.... they can add one one/two months extra interrest for early settlement.
They may or may not allow overpayments (as opposed to early settlement) however.

CLAPTON

Just to add.... if you take a three month payment holiday, you do realise that interest will be charged during these three months.

Staciep88

yes I do realise this and after looking arounf I notice that Asda offers 7.4% APR so Im leaning towards this one.

60 monthly payments of £298.15 = £17889.00 (total repayable)

Are you saying there will be more costs on top of this? This loan is without a 3 month break

Gordon_T_2

Try E-sure. They are doing loans @ 6.2%. This will obviously depend on your credit rating. Also if you dont have the repayment holiday at startup its cheapest by far. Dont ask me how I know:D

jonesMUFCforever

CLAPTON wrote: »

Just to add.... if you take a three month payment holiday, you do realise that interest will be charged during these three months.

And his will mean more than 3 extra payments at the end as more interest is charged at the beginning of a loan than the end.