Final Settlement to Natwest

charley36

Hi,

Quick question really - I have £7,800 left to pay on a unsecured personal loan.. the interest rate is 9.8% so a relative has said they will put it on their mortgage at a rate of around 4% so i wont be paying back so much each month which is a relief! Anyway i just wanted to know how much i should offer to pay the loan off with Natwest, can you negotiate or do I just pay back the figure they give? When i called they said i would have to pay back £7,200, does this sound right??

Thanks all

C

inmypocketnottheirs

9.8% over how long?

4% over how long?

Peeky

My thoughts exactly! Sounds like madness to me... awaits more information before passing judgement.

You also have to pay back what you owe (your settlement figure)

charley36

I am currently paying back £300 a month to Natwest and as my partner has just left me i cant afford it on my own so my relative offered to get 8 grand from their mortgage so i can pay it off and then i will be paying them instead which works out for me £150 a month over 5 years! i will be paying more in the long run but i will be saving more monthly.. is it a silly thing to do??

seeya23

you will be paying £9000 back £150 x60 =£9000

CLAPTON

Whether its sensible depends upon your circumstances... certainly its a very reasonable rate of interest although paying over a longer period of time means more interest of course.
Best as always to pay any loan off asap, however, if you are in financial difficulties then it may well be the best thing to do.

charley36

yeah i dont really have much option at the minute - Natwest wont let me reduce the monthly payments and i have to move out and an extra £150 a month will make all the difference at the minute!

So back to repayment figure - can i negotiate with Natwest or do i just pay back what they say and be done with?

CLAPTON

you need to ask them for a settlement figure and pay that back...

if you had previously defaulted on the loan then you could possibily negotiate a 'full and Final ' settlement i.e. a reduced payment but that would have trashed your credit rating and anyway wouldn't be relevant here.