Loan advice

mircea

Hi all

Please help me with some advice/information/pointers on a loan matter. We have a Northern Rock loan for 29k at 12.5% over 30 years. We just had a statement and realised that after four months we paid NR £1245 but the outstanding amount reduced by only £15. Ignoring the wrongs and errors of actually getting this loan (long story), I can see that something must be done about this in order to reduce the interest rate to something more sensible and also to reduce the overall term to let's say five-ten years. We can afford increased monthly payments at the moment but our credit rating is only good as opposed to excellent. Any suggestions? Thanks.

Tubbss

Hi,

The loan i sover 30 years but you are only 4 months into it.. what did you expect!

Apples2

During the final 4 Months of your loan you will pay NR £1245 but only £15 of that will be Interest, the remaining £1,230 will be lovely Capital.



.

CLAPTON

refinance at a lower APR

pay more per month

do both

halifax71

Many on here will know i've got issues with FirstPlus but come on: -

You knew the APR
You knew the loan term.

Paying off small amounts of capital at the start of the loan is normal. If you need a full explanation pleae ask.

If you can afford more then reduce the term. They will proabably charge you a admin fee (circa £100) but you will massively reduce the toal amount repayable.

You are no doubt stuck with the APR, unless you move the loan, and i would check your terms (I assume it's a variable rate), as once base rates increase so will variable APR's

mircea

We are actually more than four months into the loan - about 5 years into it.
We are unable to refinance as we do not own our own home at the moment and this kind of figure will not be lent unsecured as far as we are aware. What we need to do is reduce the APR somehow and wondered if anyone else had been able to do something similar with a NR loan.

halifax71

Story changes - 5 years not 4 months.

So, what was the APR at loan inception?

Is it a variable APR?

What do the terms and conditions say?