Should I swop loan?

donteatthat

Hello all,

Having lurked for a while I am really impressed with the advice and support given on this forum.
I am hoping someone will be able to advise me on a query I have.

I have a loan which has 24 months to run at @£470 per month 8.3%APR, I got a redemption figure which is valid until the end of August of £10,470.53.
It is one of those loans where the interest was loaded on at the front, and the repayment calculated by dividing the total by 48 months. As I understand it, I can overpay, but the overpayment doesn't reduce the monthly payment, it just comes off from the end if that makes sense.

I have an excellent credit rating, so I am wondering if it is worth trying to swop this loan over to Zopa where I can get a lower APR, or some other lender, borrowing £10,000 over the remaining term, but have more flexibility on overpayments which I can afford to make.

I hope this question makes sense and someone is able to help me decide if it is worth moving this loan or not? I have only recently realised just how much money I am wasting and how un-financial savvy I am, so hopefully I can sort myself out a bit with this site!!

TIA

xxdonteatthatxx

kevin_M

personally im a major fan of zopa im a lender. (PM me if u want a referal link you get 30 quid i get 30 quid)

The overpayment at no extra charge is one major thing zopa got right

The 2 things you got to consider when moving loans is IF its going to save you money. IS it going to pay the loan off faster.

For me its not worth it to pay off my personal loan any faster so i started investing the extra money.

mrcow

donteatthat wrote:

I have an excellent credit rating, so I am wondering if it is worth trying to swop this loan over to Zopa where I can get a lower APR, or some other lender, borrowing £10,000 over the remaining term, but have more flexibility on overpayments which I can afford to make.

What rate are you looking at on a new loan?

It's all about the maths.

By my calculations, you'd be able to save yourself a total of £270 by switching to a loan of 5% apr, but this is going to decrease if your offered apr is higher.

I'm sure you could do better than Zopa btw.

And Kevin, it's not really ethical to be offering referrals on a loans board is it? You should be doing that on the referrals board. I hope that the op has more sense to thoroughly look into their full options rather than blinding follow a referral from someone who stands to gain £30 off the back of their money :rolleyes::rolleyes::rolleyes::mad: