Nat West Loan- Please calculate my early payment fee...

TheGaz1982

Hi,

Six month ago, we got a loan from Nat West, it's terms were as follows (near enough):-

Amount: £17,000.00

Period: 7 Years

APR: 11.4%

Month Repayments: £289.47

We have currently paid six installments or £1,736.82, but we have realised we could do with paying this loan off and borrowing more at the following rate:-

Amount: £25,000.00

Period: 10 Years

APR: 11.4%

Month Repayments: £341.83

Please could someone calculate the cost (or likely cost) of paying this amount off, or provide any good advice on re-financing this loan to get the amount that we desire.

Thank You,

Gareth.

CLAPTON

from the information provided ... complete madness, but maybe you have forgotten something of relevance.

maybe re-phrase things a little

Kavanne

If you call natwest they will tell you what the settlement figure is over the phone. they can also tell you the fee you are paying.

chambta

TheGaz1982 wrote: »

Hi,

Six month ago, we got a loan from Nat West, it's terms were as follows (near enough):-

Amount: £17,000.00

Period: 7 Years

APR: 11.4%

Month Repayments: £289.47

We have currently paid six installments or £1,736.82, but we have realised we could do with paying this loan off and borrowing more at the following rate:-

Amount: £25,000.00

Period: 10 Years

APR: 11.4%

Month Repayments: £341.83

Please could someone calculate the cost (or likely cost) of paying this amount off, or provide any good advice on re-financing this loan to get the amount that we desire.

Thank You,

Gareth.

As loans of over 7 years are for home improvements only you won't be able to do it anyway.

Grovester_2

About 16350. I've factored in 2 months early settlement fee. It's only an estimate! no idea if they have any other fee's.

For 25k maybe consider a mortgage?

May I ask after getting a 17k 6 months down the line you need another 8k.
16k in interest ... that's hefty.

Kavanne

chambta wrote: »

As loans of over 7 years are for home improvements only you won't be able to do it anyway.

Chambta has correctly spotted this. Well done!

Yes, for a loan over 10 years the main purpose must be home improvements, ie; that is what the majority of the money must be used for. In your case, the 'main purpose' is refinance debt so you couldn't take it over more than 7 years with natwest sorry!

TheGaz1982

Hi,

Thank you all for your reply's.

I initially borrowed £17k for home improvements and now I need another £8k- so rather than getting another loan that runs alongside my original loan, I would like to pay the first loan off by getting £25k over 10 years.

I cannot re-mortgage due to the negative equity scenario that a lot of people are facing- me being one of them!

Any advise would be very much appreciated.

Thanks,

Gareth.

dfh

You could apply to Netwest but I doubt you will have any joy due to the current financial climate.

chambta

Kavanne wrote: »

Chambta has correctly spotted this. Well done!

Yes, for a loan over 10 years the main purpose must be home improvements, ie; that is what the majority of the money must be used for. In your case, the 'main purpose' is refinance debt so you couldn't take it over more than 7 years with natwest sorry!

Eagle eyed to the end.

It doesn't matter what you had the original loan for, as soon it's repaid with a new one it becomes 'refinance', a higher risk and looked at entirely differently.

Kavanne

TheGaz1982 wrote: »

Hi,

Thank you all for your reply's.

I initially borrowed £17k for home improvements and now I need another £8k- so rather than getting another loan that runs alongside my original loan, I would like to pay the first loan off by getting £25k over 10 years.

I cannot re-mortgage due to the negative equity scenario that a lot of people are facing- me being one of them!

Any advise would be very much appreciated.

Thanks,

Gareth.

Both myself and chambta do work, or have worked, selling loans for NatWest/RBS, by the way!

Mattchew

TheGaz1982 wrote: »

Hi,

Thank you all for your reply's.

I initially borrowed £17k for home improvements and now I need another £8k- so rather than getting another loan that runs alongside my original loan, I would like to pay the first loan off by getting £25k over 10 years.

I cannot re-mortgage due to the negative equity scenario that a lot of people are facing- me being one of them!

Any advise would be very much appreciated.

Thanks,

Gareth.

Gaz,

Ask Natwest if there is the ability to have a 'top up loan'. You're requesting an addtional £8k and an additional 3 years repayment, but the APR remains the same... Can I ask - you have spent £17,000 on home improvements, has the square footage increased at all?

I am thinking that although you may have negative equity, when was your last valuation? If the home improvements have been for extensions etc, you may be able to remortgage based on a new, higher valuation, that may be above what you paid for the property, ergo no negative equity?