£3.5k over 36 months - Best Loan?

Smithers

Hi Folks

The girlfriend and I were looking to borrow £3.5k for a new car, putting £3k of our own money towards it as well. We applied to Northern Rock as we were drawn in by the low 5.8%APR but in the end were offered 9.9%! Unfortunately this was before I had read the forums here and seen the negative comments made re this.

I am now wondering who the best people would be to approach for this loan? I had read quite a few positive comments re Nationwide but there 6.9% was only on loans over £5k. Ideally, I would be looking for something like them though, where you know what APR you are going to get and there is none of these silly games.

If anyone could offer advice it would be greatly appreciated :beer:

roswell

A life of balance credit card ??? thing there about 5.5% as an average plus there flexable

dollymouse_2

If you were to borrow £5000 for Nationwide at 6.7% you can make overpayments at any time-without incurring charges and its also charged on daily interest so you can save on the interest by paying off early. Also a fixed rate so if you apply and are accepted that is the rate you will get.

newmoneyuser

You could also try Zopa.com, if you look back over the last few days in this forum you will find a very long thread covering this 'service' and what different people think of it.

Smithers

dollymouse wrote:

If you were to borrow £5000 for Nationwide at 6.7% you can make overpayments at any time-without incurring charges and its also charged on daily interest so you can save on the interest by paying off early. Also a fixed rate so if you apply and are accepted that is the rate you will get.

You read my mind, I have actually been thinking this. So if I took out a loan for £5k, the £1.5k I would have been putting directly towards the car myself, I could actually use to make an overpayment on the loan? How would this then effect the monthly repayments I was making?

Thank

dollymouse_2

If you go for £7000 it would be 6.4% - could put your savings into a higher interest account maybe?

Overpayments dont change the monthly repayment the dd will always stay the same but the loan would finish sooner and you'll save on the amount of interest you would've paid.