Calculating Interest

Moley456

Hello.

Can anyone help. I'm currently looking for loans for my Legal Practice Course next year. I was wondering whether anyone can tell me how interest and repayments are colculated.

I have been looking at the leaflets and info the banks give out but it only gives examples for a £15000 loan. I'm thinking with nearly £10000 going for course fees i'm better playing safe and taking nearly £20000, although i was some idea of the interest and loan repayments before i go to the bank. I'd like to know what i'm talking about before the bank start trying to bamboozle me with numbers.

Thanks in anticipation.

MATT

grumbler

http://www.whatsthecost.com/loan.aspx

When choosing a loan the main factor is APR (not monthly payments!) and the most important factors to be careful with are:

• early redemption charges
• Payment Protection Insuranse

See:
Personal Loans. How to get the UK's cheapest article
Banking and Loans - link to all articles

Moley456

Thanks for that site, that is fantastic. I supopose i should ask is Varible APR better than Fixed APR? The loan i'm looking at is 6.9 Variable or 7.9 fixed? Is it worth taking the risk of the variable interest rate?

MATT

grumbler

Moley456 wrote:

...i should ask is Varible APR better than Fixed APR? The loan i'm looking at is 6.9 Variable or 7.9 fixed? Is it worth taking the risk of the variable interest rate?...

Nobody can tell you. Banks offer their fixed rates based on their forecast of future rate changes. You make your decision based on your forecast.

Moley456

OH ok. Thanks. i'm really wishing i didn't have to take out a loan now!!! Will go and speak to NATWEST as they seem to offer the best loan. Will see what they say.