Current Loan Situation

rach83

Hi I have a loan with Nationwide which I took out 24 months ago for £8,000. The total term of the loan was 60 months. I estimate to have paid off about £3744. Leaving £5616 including interest. This loan is at a rate of 6.7% which I think is quite high considering what the current borrowing rate is (I believe the cheapest is 5.6%) I have a very good credit record having had a mortgage and credit cards which have always been paid on time. Should I move and if so who to?

Cheers

Emmzi

Phone and ask for a settlement figure including early repayment charges before shopping around. Then you can do a realistic comparison.

Luke

I wouldn't bother.

Run the figures into a loan calculator (try moneysupermarket) and you will see the difference is minimal.

Nationwide are good regarding overpayments.

If you move your loan you will be tempted to increase it to for example £6,000or even higher. Or take it over a longer term like four years, keeping you in debt for longer.

You only have three years left, two and a half if you made a few over payments.

Just stick with it.

nomoneytoday

1.1% of 8000 is about £88 a year (just over £7 a month)
By the time you have paid redemption penalties, it probably isn't worth it.

Nationwide are one of the better lenders and will accept overpayments so you could clear it earlier if circumstances changed