Loan Help Please

golden_girl

I have a good credit history and have been with Barclays for 16 years.
I took out a loan for £12100 in July 2005 and Barclayloan Protection (After finding this website I know now how stupid I was. Didn't realise you could get a standalone policy if needed).

Payments are as follows:
Interest Rate 7.765% p.a

Amount of Loan £12100
Total amount payable £15723.12
Monthly Repayments £187.18
Number of repayments 84

Protection
Amount £3148.51
Total amount payable £4091.64
Monthly Repayments £48.71
Number of repayments 84

What I was thinking is to go into my branch to cancel the protection. I also would like the loan paid off over 48 months. I phoned Barclays this evening and was told the amount left was £14149.00 but I would receive a large refund from the protection cover. But the dept only work office hours and he wasn't sure how much this would be.
I had a look on their website and fount the following:

Loan amount £10,300.00 (If this what will be remaining after the refund??not sure yet)
Total amount repayable £11,799.84
Monthly repayments £245.83
Number of repayments
48
Typical 6.6% APR

We have had loans from them over the years (due to reckless spending) and have never missed any payments.
Since reading through this website I have been done a budget which we are sticking to and really want to pay off my debts.

Any suggestions whether you think Barclays will do this???

As you can see from my signature I guessed what was owing on my loan ( Wasn't sure how to work it out with the procection and interest)..

Rafter

By my quick and dirty calculation, about 80% of the insurance will be refunded.

This may seem a bit mean only 8 months into an 84 month loan, but because the loan amount outstanding at the beginning is higher, the insurance is not applied evenly over the life of the loan.

Don't see any reason why the bank won't reschedule your loan. Make sure you have a standalone payment protection quote to hand so you don't get the hard sell as to the risk you are taking by cancelling.

Good luck.

R.

golden_girl

I phoned up my bank to ask how much was remaining on my loan which was £14152.81 less insurance £2580.60.

I asked if I could cancel PPI and redo the loan over a shorter term and was told no. If I wanted to do that I would have to apply for another loan increasing the amount needed by £500.00 but my interest would be 10.9% and not the original 7.7.65%.

Following on from your suggestion where would I get a good standalone payment protection quote.

Many Thanks for you help :j

Rafter

Here is Martin's article on cutting loan insurance costs

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094824697,77411,

Also, click the link at the top of this page to moneysupermarket. They have a loan comparison service which doesn't leave a search on your credit record, but gives you an idea about what rate you might get and from who.

Moneysupermarket also do loan insurance comparisons too.

I suggest you do some research. Try one application for a loan and if you get a decent offer either take it or go back to Barclays and see if they will beat it or risk losing a customer of 16 years to a competitor!

R.

golden_girl

I've just been going through all my finances to see if I can reduce my loan without going furter into debt. I have a good credit report no court orders etc.

I currently have the following:
Loan with current bank I have been with for 16 years.

Amount of Loan £12100
Interest Rate 7.765% p.a
Total amount payable £15723.12
Monthly Repayments £187.18
Number of repayments 84
76 payments left to make

Protection
Amount £3148.51
Total amount payable £4091.64
Monthly Repayments £48.71
Number of repayments 84

I phoned up my bank to ask how much was remaining on my loan which was £14152.81 less insurance £2580.60. But this insurance is refunded by a cheque.

I have some small life insurances policies which are not tied in with my mortgage with Halifax.I have a separate policy to cover my mortgage payments. These policies have a total surrender value of £6500.00

I was thinking of surrendering my policies which will leave me to find £7655.82.
The refund from the insurance money will pay my Barclaycard of £2040.00 6.9% and Grattans of £200.00 0.0%

I have had a look on Halifax website which has the following:
Personal Loan
Monthly Amount £234.55
Loan Amount £7600
Number of repayments 36 months
6.4%

I can afford £234.55 a month as my current loan is £235.89. I also have check the standalone policy which is £12.93 a month from PaymentCare.


Any suggestions please on what to do. :A

golden_girl

After careful consideration I have decided to not to cancel all my life insurances as 2 of them are long term for when I am old and grey. I will be cancelling a shorter term policy which will be used to pay some more off my Barclaycard.

:j