LOAN - Any with no penslty early repayment?

BeerBelly

Hi Guys,

I am getting married this year and need to borrow the last bit of cash. I am looking to borrow £8K. We are asking for cash gifts towards honeymoon (large proportion of loan) - Are there any short term loans (no longer than a year) than let you overpay penalty free? Am thinking to put wedding gifts straight off the loan, but dont want any logner than a year to get interest down a bit.

Thought about credit card route, but want to get the cash.

Wuld be paying around 600-800 a month off it to get rid ASAP.

Any ideas of what offers I can evaulate - i won't take anyone's comments as fiaince advice, just need a place to start?

Saw an article from Martin about that place (begins witrh Z?) where other people lend you money, think was around 7% and allow overpay..etc (seemed like betfair ), but how does this work in reality? Anyone here used them?

Any help much appreciated!

Tixy

Zopa - quite a lot of people use them. But I don't so can't offer advice sorry.

Who do you bank with? I'm with HSBC and they have a flexi-loan facility which might suit, you can pay back and reborrow as you want, not sure if the APRs are competitive for £8k though. Not sure what other banks would have similar.

Are you aware of the new loan rules that started this week? These mean that all loans allow you to overpay and there is a maximum penalty you can be charged. Might work out cheaper to find the cheapest loan you can and then accept the small overpayment penalties that arise - its only 1% of the overpayment so even if you overpay £6k of the loan compared to the standard repayments the cost would only be a maximum of £60.

KiKi

Tixy wrote: »

...its only 1% of the overpayment so even if you overpay £6k of the loan compared to the standard repayments the cost would only be a maximum of £60.

That's very useful to know, Tixy, thank you.

KiKi

Tixy

KiKi - there is a bit more info on it here http://www.moneysavingexpert.com/news/cards/2011/02/the-credit-card-and-loan-shake-up-what-it-means-for-you
Not totally sure whether this will count for existing loans as well as new ones - seems to be some conflicting opinions and I haven't seen anything definitive either way yet.

zppp

Tixy wrote: »

KiKi - there is a bit more info on it here http://www.moneysavingexpert.com/news/cards/2011/02/the-credit-card-and-loan-shake-up-what-it-means-for-you
Not totally sure whether this will count for existing loans as well as new ones - seems to be some conflicting opinions and I haven't seen anything definitive either way yet.

It depends on the bank and when they implemented the CCD. Pre-CCD loans do not have to comply with the CCD and are still regulated by the CCA.

Any agreement with the following at the top are CCD loans, and follow the above advice;

'Standard European Consumer Credit Information' see this link for an example of the layout of the agreement;

http://www.bis.gov.uk/assets/biscore/consumer-issues/docs/10-572-pre-contract-credit-information-secci

Tixy

Thanks zppp

BeerBelly

thats great to know!

Where will I find out iff this CCa or CCD - how will I know it applies?

Thanks

zppp

It will be regulated by the Consumer Credit Directive for loans after 01 Feb 2011

Tixy

If you apply for a new loan now they have to apply these new rules;).

jonesMUFCforever

Has OP thought about asking for an overdraft?

Must admit I would have no idea how much my friends and family would give if I asked for cash so do you have a plan B if you don't get as much as you hoped??

BeerBelly

My Assumption is based on getting £0 wedding presents - I can afford to payuback £600-800 a month hence no longer than a year.

As a 'bonus' any cash from wedding would like to overpay to get it all done quicker.

So, I guess try and find the lowest % interest regardless of legnth as they can only charge me 1% overpay fee, or just find one for a year?