Best short term loans?

kcfitz

I am after a short term loan for a maximum of 6 months. I will be in a position to pay this off at the end of that period but require £20.000 at the present time. Does anyone know the cheapest way of going about this please?

jennihen

Your own bank is the short answer. Without more information it is not possible to give any other advice.

kcfitz

Wanted to avoid the bank really - and won't they charge a high interest rate and a penalty charge if I pay it back quicker than the 6 mths?

CLAPTON

assuming you have an income of 50k or above
a positive credit history
no significant debt
then a main street lender will be fine

mothershipton

what about trying ZOPA, online borrowing from people not banks. You can then pay the money back without a penalty

jamesd

For this period an overdraft may be the best option if your bank is willing. Depends on any fee and what overdraft interest rate you pay.

For all personal loans the amount of any penalty that can be charged is limited depending on the term of the loan and can't generally be more than one month's interest for a loan with a planned duration of less than a year or two for longer.

If the bank won't do it or the overdraft interest rate is too high then a standard personal loan is the way to go. Best is one without an application charge because any initial charge will have a big effect on the interest rate paid over just six months, with a fee or £120 on a £15,000 loan increasing the APR by about 1.6%. If the initial loan term is longer than six months the APR calculation will claim it's less than this because it'll be spread out over the whole term even though you won't be using the whole term.

If you have a mortgage and equity your mortgage lender might offer you an additional advance for some purposes.

Wutang_2

Dreamlinefunding- your spamming is as bad as your site