Advice on existing loans please?

shane8960

Hi all,

My car insurance has just came around and I noticed that Martin says never to take it as monthly payments (18.9% with Bell!!!!).

Anyway, I currently have two loans with nationwide:

£4500 @ 6.7% over 3 years, just finished the 1st year
£500 @ 12.9% over 3 years, just finished the 1st year (this was meant to be an extension of the first loan - but something went wrong and ended up like this)

My Car Insurance is about £1200ish, and by my calculations I have about £3500ish left to pay on my loans.

Would it be possible for me to go to Nationwide, take a £5000 loan (only need £4500ish, but must take £5000 to get 6.7%) over 1 year, pay off both loans and the car insurance, put whatever is left into a savings account and pay it off each month.

I would prefer to borrow £4500 if possible though but like I say, I need to borrow £5k to get the rate. Also as my existing loan is at 6.7% does anybody know if I will be able to "add" the extra I need to this loan, and shorten it to 1 year and pay off the £500 loan and my car insurance.

Thanks, shane

_Andy_

You won't be able to 'add' to an existing loan as such, it would involve a new application and credit search/scoring etc.