HSBC Managed Loan -

ShelfStacker_3

If you only have 6-8 months to go, and the APR is only 8.5% (I doubt it is to be honest, I think there might be an error in communication there - that's even lower than HSBC's staff promotional rate for plain old personal loans, so I doubt it'll be the rate for a managed loan held by a retail customer) then refinancing is probably not a good idea.

For a start, few places will give you a personal loan for just 800 quid, HSBC definitely won't. You could try doing a 0% super balance transfer from an MBNA issued credit card like Virgin Money, which might help. Not sure about any early repayment stuff that may apply though.

noah271007

ShelfStacker wrote: »

If you only have 6-8 months to go, and the APR is only 8.5% (I doubt it is to be honest, I think there might be an error in communication there - that's even lower than HSBC's staff promotional rate for plain old personal loans, so I doubt it'll be the rate for a managed loan held by a retail customer) then refinancing is probably not a good idea.

For a start, few places will give you a personal loan for just 800 quid, HSBC definitely won't. You could try doing a 0% super balance transfer from an MBNA issued credit card like Virgin Money, which might help. Not sure about any early repayment stuff that may apply though.

Thanks Shelfstacker and Idavies for your input. :beer:

I have double checked my agreement copy of the managed loan. It states that interest rate will be 7% over our base rate which at the date of this agreement gives a variable per annum rate of 12.5%
So at the time of signing the agreement the England Bank Base rate was 5.5%.

I have noticed that the interest charged on my managed loan have decreased by £6 since Sept 2008, when the interest base rate have shot down to 1.5% even though i was paying same amount per month.

I have worked it out using calculations that it seems to be tracked with the England Base rate.

So on that basis, I am better off staying where i am now. I doubt it very much the interest base rate will go up in the next 6-8 months or even look elsewhere.

However, is it possible to pay off the managed loan by credit card? - if i was to consider the 0% promotion offer from a credit card (if i apply for one) -that way i save money by not paying interest as long i clear off the balance on cc before the 0% balance offer ends?

ShelfStacker_3

If you take out the Virgin Money card like I suggested, you could balance transfer to a non-existent overdraft on your current account and pay off the loan that way. There are very few other cards that will let you BT in this way, fewer still that will do so for a loan.

noah271007

ldavies wrote: »

A large proportion of MLA accounts are last ditch resorts to gettng back on track and usually are stripped of all things considered normal such as overdrafts, debit cards etc.

It is interesting you mentioned A LARGE PROPORTION of MLA accounts are last resorts. What happen to the other small proportion?

esmerellda

some bits to read

http://news.bbc.co.uk/1/hi/uk/7145579.stm

http://www.reclaimtheright.com/forum/campaign/144366-hsbc-managed-loan-campaign.html

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/98209-help-needed-hsbc-managed.html

about mis-selling which may apply


Theres a few threads on here too about these loans.

noah271007

A big thank you esmerellda!

It is interesting. I never had my interest reduced after a year of repayments...I will get HSBC to pay back the interest incurred on the duration of the loan since 2006. I know i will have a long battle to get the money back but CLEARLY i should have been advised to leave as it is at the time back in 2006 and ensure i get my interest fee overdraft of £2,000 reduced by £500 each year until it reach zero after my graduation. I would have not paid ANY interest.
It shouldn't credit score my credit file, as i had an excellent credit history (apart from o2 default which was later found to be unfair and removed).

chambta

noah271007 wrote: »

Thanks Shelfstacker and Idavies for your input. :beer:

I have double checked my agreement copy of the managed loan. It states that interest rate will be 7% over our base rate which at the date of this agreement gives a variable per annum rate of 12.5%
So at the time of signing the agreement the England Bank Base rate was 5.5%.

I have noticed that the interest charged on my managed loan have decreased by £6 since Sept 2008, when the interest base rate have shot down to 1.5% even though i was paying same amount per month.

I have worked it out using calculations that it seems to be tracked with the England Base rate.

So on that basis, I am better off staying where i am now. I doubt it very much the interest base rate will go up in the next 6-8 months or even look elsewhere.

However, is it possible to pay off the managed loan by credit card? - if i was to consider the 0% promotion offer from a credit card (if i apply for one) -that way i save money by not paying interest as long i clear off the balance on cc before the 0% balance offer ends?

I think you are confusing 'flat' interest rates and APRs. The APR on the loan will be higher that you think.

noah271007

chambta wrote: »

I think you are confusing 'flat' interest rates and APRs. The APR on the loan will be higher that you think.

Chambta, I am not confused.

My Managed Loan is 7% APR above whatever the England bank rate is.

Example:

7% APR plus 5.75% base rate would be 12.75% APR

Now it is 7% APR plus 1.5% base rate = 8.5% APR

I have done my calculations and it worked out just about right. I don't know what you are referring to 'flat interest'

chambta

noah271007 wrote: »

Chambta, I am not confused. I know what i am talking about.

My Managed Loan is 7% APR above whatever the England bank rate is.

Example:

7% APR plus 5.75% base rate would be 12.75% APR

Now it is 7% APR plus 1.5% base rate = 8.5% APR

I have done my calculations and it worked out just about right. I don't know what you are referring to 'flat interest'

Where does it say 7% above base APR?

You admit to not knowing what a flat rate is but insist you know what you're talking about!

noah271007

chambta wrote: »

Where does it say 7% above base APR?

You admit to not knowing what a flat rate is but insist you know what you're talking about!

There is no flat rate involved! 7% APR above whatever the england base rate is.