Having trouble finding loan with repayment break

smulx

My friend is is wanting to get an unsecured loan of around £12,000 but she wants to be able to take a payment break of a few months at the start. Just wondering if anyone knows of a place that are offering a deal like this? Payment breaks used to be quite common but I can't seem to find one now.

jonesMUFCforever

Buy now pay later loans can be found at most banks to customers with an A1 credit file.

My worry for your mate is why take a holiday break at the start where the interest will roll over massively increasing the overall cost.

BabyBetty

Hi Smulx,

Halifax do a payment break of 3 months at the start of their loans. This month I have just finished off paying my loan with Halifax which was for £13,494 over 24 months with a payment break at the beginning of 3 months.

The interest was calculated up front so I was able to see what I would be paying throughout the term of the loan - so there was no suprises.

BB

Asa

HSBC do loans with a 3 month payment break at the beggining or you could have a payment holiday every january throughout the life of the loan

boundy

Tesco are also doing a 2 month payment break at the start of the loan at the mo and I think sainsbury's are doing 3 months

smulx

Cool, thanks. I think with HSBC and Halifax you need to bank with them though.

Will a break of a few months really affect the interest that much?

BabyBetty

The interest that I paid was fixed throughout the loan period - I knew what it would cost me before I signed the contract.

The interest on the loan should not go any higher that what is agreed regardless of the break at the begining. Best thing to do is to confirm this with the lender that you do choose.

BB

john_white

A loan that is not being repaid (holiday) will cost more than one that is being repaid from the outset. By taking a holiday you are increasing the loan amount as the interest is being added to the loan, then you pay onterest on that too.

dizzyblonde82

Depending on what the loan is for a payment break may not be available, ie Tescos will not give you a 3 month payment break at the start of a loan if the loan is for debt consolidation.