Cheapest flexable loan?

Bluelion

Does anyone know/seen a flexable loan rate thats cheaper than the Post Office's 9.9% ?

Rafter

There aren't many left.

Moneyfacts is only showing Post office and coventry building society (which is more expensive).

Have you thought about a life of balance credit card or 0% balance transfer or purchases card?

You may not have enough debt to qualify for post office 9.9% rate, if that is why you need the loan? Loans over £5000 get the 9.9% rate, those under are more like 13%

Good luck

R.

Bluelion

Its for a car loan, im looking to take out around 12K.

Hmm thought as much. The reason why im looking for a flexable product is because my side projects are going to bring me some cash in the future and I want to pay them directly into my car loan. Which would work out cheaper for me as apose to a 8% loan without a lump payments option.

Rafter

OK.

If it is a new car, some dealers are going good financing deals at the moment, almost below what you could earn on a good savings account. You also get the added benefit of being able to hand the car back half way through if your circumstances change.

2% on a loan of that size is going to average £120 per year roughly on a loan that size. Problem is that the 'spread' that is the difference between savings account rates and loan rates has widened to 5% plus.

Personally I would pay the premium for flexibility so you can overpay.

What is your housing situation? Could you get a flexible offset mortgage that would allow you to borrow even cheaper?

R.

Bluelion

I live with parents, so that isnt an option unfortunately.

I do agree, paying the extra interest is worth the ability to overpay. Better check to see if the Post Office will actually accept more application though first eh?

Rafter

That might be the problem.

The post office loans are operated by one of the Irish banks, and they are all up against it at the moment.

It may be they will only lend to people with their own home too.

Worth a try, but if you are rejected, don't fire off too many applications elsewhere, otherwise you will look desperate on your credit report.

Good luck

R.