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Calculating Lower interest rate vs flexible loan

sundin13 Posts: 481 Forumite

7 June 2009 at 12:15PM in Loans

Hi, can anyone advise me of where I can find a calculator (or the calculations to use) to work out how much I would have to overpay a loan by, to work out better off than I would have been at a lower interest rate.

Sorry if that sounds confusing. I am looking at borrowing 8k over 5 years - I am undecided about whether to get an Egg Loan at 11.9% and make overpayments on it - or to go with whatever the best market price is (about 8%) and not have the overpayment facility.

Any thoughts?

Thanks, in advance

S13

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Calculating Lower interest rate vs flexible loan

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