Cheapest Loan?

shonky_2

Can anyone say why Martin is promoting the Northern Rock 5.8% loan as the cheapest in the market whilst the Liverpool Victoria 5.5% loan is cheaper?

Rafter

Why not ask him?

Maybe he doesn't know about the Liverpool Victoria one!

R.

Martinslovechild

The Liverpool Victoria uses the Rule of 78 which means that the interest is front-loaded.

shonky_2

But even so, with a 5.5% APR is still cheaper than the Northern Rock rate that Martin is touting of 5.80%. Rule of 78 only comes into play if you want to pay off the loan early.

I'm sure it was an honest mistake, I always just get a a bit antsy when people promote products as the cheapest in the market when they aren't actually the cheapest. Particularly when they get kickbacks from each sale like Martin does.

Martinslovechild

I've just checked Martin's loan article and notice that he's updated it today to include a link to Liverpool Victoria.

It's also interesting to note that according to this article, the Rule of 78's days are numbered.

MSE_Martin

The answer is because while Liv Vic has been advertising all week, since Tue afternoon their website wouldn't actually let you apply - and it was an online online loan.  Then yesterday at 4pm it had so many technical problems, it pulled the rate and is offering a higher rate.  It was my top pick (for uninsured loans) prior to tues, then once it was not longer available i rewrote (even though it may have appeared to be available for another day).

I had official confirmation that they'd pulled it yesterday. It seems now they may have reinstated it. I will check