Cheap loan advise please

olorin_2

Hi,
Need advise on getting a cheap loan.
I have a flexi loan from cahot at 20% which i got in 2002.
i want to pay it off with a cheaper loan or i will paying this off for another 11 years.
Any help would be most gratefull

Tixy

How much do you owe on the flexi loan?

What other debts do you have? what other open credit accounts? what are the limits on these?
Do you have an overdraft? how often do you use it?
What is your credit rating/history like?

Are you in full time employment? How much do you earn?

olorin_2

Hi Tixy.
The amount i owe is around £8500.No overdraft,no other debts other than my mortgage.

olorin_2

Hi again Tixy.
Meant to add,i have a full time job and i have a net salary of around £18500

Tixy

Do you have a good credit rating? any late payments? missed payments? defaults or CCJs etc?

Might be worth trying your own bank to see if they may lend to you at a more competative rate. If you go and talk to them in branch they may be able to do a 'soft search' to give you an indicative APR without leaving a full credit search on your credit file.
Was the loan originally on a 19year term then? That seems a very long time for an unsecured loan.

But you may have a problem with your debt to income ratio. If you already owe £8500 and want to borrow another £8500 that will take you up to potential credit of £17k which is very high compared to your income (whilst you intend to consolidate the new lender cannot force you to do this so look at a worse case scenario and whether you could afford to service both debts).

How much can you afford to pay each month? what is the current payment on the existing loan? Does the loan you have at the moment allow overpayments?

olorin_2

Hi.
No ccj's,or anything.just need to lower the intrest rate.
I pay around 240 amonth now and the intrest eats into this and means i am only paying it off at around 64 a month