Capital & Interest Loan help?

mrsb83_2

I have a jointly held £25,000.00 personal loan with Natwest, taken out over a 7 year term.

When I first took out the loan, it was a fixed sum agreement at 7.9% and the interest was front loaded.

However, I was mis-sold the loan as it consolidated other Natwest debt which actually had interest free periods remaining. I complained, and eventually the loan was repaid, minus the interest element, and I was given a new loan. By this time the interest free periods on the other lending(which had been extended) had expired.

The rate is now 6.7% and the interest is added quarterly. I was unsure of the rate and had to telephone the bank. There was some confusion and the rep told me that as it was a capital and interest loan, I needed to speak to another team. In the end, she could give me the rate details.

The loan account is linked to my online banking, and I can make overpayments straight from my current account. The current debit balance is £15,500.00. It's only going to take me a total of 6 years at minimum payment to clear the debt, with interest of around £5000.00

My question is, how usual is it for a personal loan to be granted on these terms? It seems as though I have a mortgage-style personal loan which allows me to make overpayments as often as I want. I've never heard of anyone else having something similar, and the rep did think it was unusual.

So did I end up getting a good deal from Natwest?

jonesMUFCforever

I should say so!
If you don't believe me try getting a better deal and see how you get on.

As long as the lender complies with the CCA they can set up unsecured lending any way they want.

mrsb83_2

Thanks jones!

I didn't really pay a lot of attention when the loan was being set up (classic avoidance!). But now that I'm working towards being debt-free, I got the impression that I lucked out with the loan (although it was their c*ck up in the first place).

I know £15,000.00 is a lot left to owe, but I feel better knowing that it was on good terms.

As long as the lender complies with the CCA they can set up unsecured lending any way they want.

Interesting. It seems the bank really did go out of their way to recompense me for their error!