Can't find a loan that offers what I need!

redrabbit29

Hello all,

To keep this really easy and quick rather than dribbling on:

- Loan needed for a nearly new car
- Amount of £7000
- Paid over 24 months I hope
- No penalties, or very little penalty if I want to pay it off quicker or want to pay more money each month. IMPORTANT!
- I don't want a (bloody!) payment holiday. I want to start paying it off immediately

Alliance and Leicester offered me this for 13.3% which is acceptable, however the penalties for paying early seems quite a lot and puts me off a little bit.

Thanks everyone

MFWannabe

Hi Redrabbit
That seems very high interest rate. Have you tried putting in the details into a comparison site like Money Supermarket?
It will tell you if there's any penalties and the interest rates on various loans
Hope this helps.
P.S You may find that you get a better interest rate from £7,500 upwards

redrabbit29

FREEZ wrote: »

Hi Redrabbit
That seems very high interest rate. Have you tried putting in the details into a comparison site like Money Supermarket?
It will tell you if there's any penalties and the interest rates on various loans
Hope this helps.
P.S You may find that you get a better interest rate from £7,500 upwards

Thanks a lot for the quick reply. What 7500? What's special about that figure?

Will try money supermarket now.

MFWannabe

I know it might sound strange but try changing the loan amount and seeing if the interest rate changes; usually over £7500 it becomes lower. I said that as you said you were looking to borrow £7000

ERICS_MUM

Nat West recently offered my brother a rate of just over 10% on a loan of £17,000. Is this reasonable ?

CLAPTON

redrabbit29 wrote: »

Hello all,

To keep this really easy and quick rather than dribbling on:

- Loan needed for a nearly new car
- Amount of £7000
- Paid over 24 months I hope
- No penalties, or very little penalty if I want to pay it off quicker or want to pay more money each month. IMPORTANT!
- I don't want a (bloody!) payment holiday. I want to start paying it off immediately

Alliance and Leicester offered me this for 13.3% which is acceptable, however the penalties for paying early seems quite a lot and puts me off a little bit.

Thanks everyone

the penalties for paying early are a a maximum of 2 month interest... very very reaonsable

13.3% APR is rather high however

redrabbit29

CLAPTON wrote: »

the penalties for paying early are a a maximum of 2 month interest... very very reaonsable

13.3% APR is rather high however

This is quoted from the contract thing I got from A&L:


================ START QUOTE ==============


if you settle early, the settlement amount that you would have to pay per £1000 borrowed would be as follows:

if you wanted to settle after a quarter you pay £792.15 per £1000 borrowed


if you settle at the half way point it is £552.41 per £1000 borrowed

if you settle after 3 quarters of the loan contract you pay £289.13 per £1000 borrowed.


================ END QUOTE ==============


I find that a bit confusing. If I borrowed £7000 and after half the loan has been paid off, I would have £3500 left to pay.

What exactly would I have to pay to settle?

redrabbit29

I've applied for a TESCO loan tonight as the APR seems better and I tried £7500 over 2 years, so may have better luck with them.

OneHubbyOneSon4Debts

redrabbit29 wrote: »

This is quoted from the contract thing I got from A&L:


================ START QUOTE ==============


if you settle early, the settlement amount that you would have to pay per £1000 borrowed would be as follows:

if you wanted to settle after a quarter you pay £792.15 per £1000 borrowed


if you settle at the half way point it is £552.41 per £1000 borrowed

if you settle after 3 quarters of the loan contract you pay £289.13 per £1000 borrowed.


================ END QUOTE ==============


I find that a bit confusing. If I borrowed £7000 and after half the loan has been paid off, I would have £3500 left to pay.

What exactly would I have to pay to settle?

Not exactly sure what you would have to pay back but it would be more than £3,500 because thats half the amount of the actual loan, you are forgetting about the interest they add on to it.

By my calculations you would probably have to pay back around £5,000 after half the loan is payed, but I could be wrong..........

bouncydog1

What about a 0% on purchases credit card - some deals out there at the mo for 15 months - dealer may charge you for using the card but maybe you could negotiate. Alternatives - superbalance transfer to your current account from somewhere like MBNA - o.k. 4% charge and you would have to seek a new deal in 12 months because the 0% would end but cheaper than a loan.

Alternative is life of balance credit card cheques - Halifax often send us offers on this basis with no fee to use the cheque if used by a certain date and interest over life of balance is around 6%. You pay the cheque into your bank account and use the cash to pay for the car - perhaps negotiate a discount with the dealer.

iolanthe07

ryanbenjamin wrote: »

If you are some of a category that you can not find a loan for yourself cash 1 hour will be a better wat for you.

Either this is a genuine post, or else it is spam advertising. In any case it is incomprehensible. If it isn't spam, could you try again in English?