'overpayments' on loans

OberonSH

Hi all,

I have a loan with Barclays, and i was told when I took it out that I wouldn't be able to overpay onto it. However, the advisor did tell me that I'd be able to put the extra money aside and then every now and again basically take out another SMALLER loan using the savings to pay the difference, therefore making lump sum overpayments.

Can anyone tell me if this actually works and whether there's fees etc involved? I'm unaware of any early repayment penalties.

Rafter

Depends on the terms and conditions of your loan. I think Barclays introduced fees but they can probably be waived if you are simply rescheduling an existing loan.

Otherwise open a Barclays regular savings account and earn 10% on it (~8% after basic rate tax). This may be better than the rate on your loan potentially?

R.

OberonSH

Fraid not, it's 15.9%!

Back to trawling the t&cs I guess

lynseydee

A bit new to this. Here goes...

Was wondering whether anyone knows of any flexible loans apart from Cahoot I could possibly apply for. I currently have 2 credit cards and a huge overdraft and was looking to consolidate everything into one. I am also contemplating applying for an Intelligent Finance credit card as they have a "life of balance" of 4.95%. Obviously I would need to try to get rid of 1 of my credit cards to at least get some chance of a decent credit limit with them. Ideally, the flexible loan option would be my preferred option. Can anyone help.

From slowly stressing out.

Rafter

Oberon. Worth talking to Barclays and seeing if they apply early settlement fees for simply rescheduling a loan if you want to make overpayments.

You have a strong case if the advisor suggested that this would be the case when you took the loan out.

lyndseydee, you could try Egg which is also a flexible loan.

R.

lynseydee

Thanks Rafter, didn't know they did flexible loans until I just rang them to see what deal they could offer me on my cc and they suggested it. Didn't see your message before I called them but thanks for letting me know anyway.