Looking for a loan I can pay off early

mr2nut

I'd like to take out a loan for a car, and I want the ability to pay off in lump sums as and when I have spare cash to clear it faster.

Does anyone know of a good reputable place I can pick up one of these loans?

kaisersoze_2

I think most big banks allow you to make overpayments without any penalties.

mr2nut

kaisersoze wrote: »

I think most big banks allow you to make overpayments without any penalties.

Are there any loans that allow you to do overpayments via the website or do they all require you to just send the payment to a specific sort code via your online or telephone banking?

The reason I need the flexible loan is, i'm buying another car (5k) and when I sell mine hopefully within a few months, I can then pay off a big lump sum off the loan at once (around 3k) then make quick overpayments the following months to get things payed off quicker.

kaisersoze_2

I think you have to ring them up and pay over the phone with a debit card.

Have you thought of trying to get a 0% credit card and buy the car on that.
Halifax and Natwest do a credit card with 0% purchases for 9 months.

Rafter

Loans will allow you to make overpayments, but only so much before you incur early repayment charges potentially.

The post office is one of the few left that has repayment penalty free loans.

You can search for these specifically on moneyfacts but it is a dwindling list.

For that much, and if you earn enough to get a decent limit, the 0% credit card shuffle looks like a possiblity as kaisersoze says.

R.

saveallmymoney

zopa.com is totally flexible.

mr2nut

I definately couldn't afford to pay off £5k in 9months even with the car sale. Well...I could maybe stretch it but i dont want to be skint all that time with summer coming. I've had enough of the boring winter it's :beer: time :D

kaisersoze_2

mr2nut wrote: »

I definately couldn't afford to pay off £5k in 9months even with the car sale. Well...I could maybe stretch it but i dont want to be skint all that time with summer coming. I've had enough of the boring winter it's :beer: time :D

You dont have to pay it off in 9 months, if your credit rating is decent you could become a card tart and bt the remaining balance onto another cc and will probably get at least 12 months 0% if not more.

You could conceivably end up with a 0% loan for at least 2 years.

http://www.moneysavingexpert.com/cards/best-0-credit-cards

willsonline

Natwest are flexible, can pay extra if you want. And you can do it online within seconds!

mr2nut

Cheers for all the replies.

So this Zopa.com then, would you recommend it over a normal big bank loan and is it safe?

Here's what I need to be able to do...

Say I need £6000 over 24months just to cover myself. 8.9% is the rate so I work that out to be £6534 with the interest which is £272.25 per month minimum.

I want the flexability to be able to pay this loan off as and when I want without no extra charges or changes to the interest.

For example... Within the first 6 months, if I manage to get a big lump sum of say £2-3k, I want to be able to pay that off immediately with no hassle and then also pay the rest well in advance of the 24month deadline. Is this possible with Zopa or say the Post Office flexible loans, or are there still catches such as "can't pay over a certain amount with this timescale" etc..

These may be thick questions to experienced loan takers, but this is my first and I want to make sure that the interest i'm initially quoted, isn't exceeded for paying even the whole thing within say 1 year.

saveallmymoney

I have a Zopa loan and have been paying it off early, the interest is calculated daily.

You can pay what you like, when you like with Zopa.