Bank Loan

alexishonfire

I took out a bank loan just over a year ago to consolidate some debts. As I am under 25, the best rate I could get was quite high. I borrowed £4000 and I am paying it back in monthly instalments of £130 over 4 years. That was through my own bank, Barclays.

I am aware that this isn't a great rate. I am now in a position where I want to borrow money for something else. Does anybody know if I can borrow against this loan, or if it is possible to get the interest rate on that loan down. Any information would be greatly appreciated.

A.

Tixy

What is the APR on your current loan? about 30%?

You could apply with barclays for another loan to pay off this one and borrow more on top, but if they accept you for a new loan it might not be at a lower rate at all.

Or of course you can look elsewhere to see if you can get a cheaper loan to pay off this one and borrow extra. To give you an idea of whether that is likely to be possible (before you start making lots of applications) if you can answer the below people might be able to help advise.

What is the settlement figure on this loan?
How much extra do you want to borrow on top?
What is your credit history like? any late payments, defaults? are you on the electoral register? what credit accounts do you have showing on your credit file?
Are you employed? how much do you earn?
How much are your total debts?
How much can you afford to repay a month for the new loan?

malcolmffc

The OPs APR is about 11% based on the monthly repayments.

OP, your best bet is to overpay the loan. Even an extra £50 per month would clear the loan over a year early and save you £400 in interest. Alternatively, get a credit card with a long 0% deal and shift your spending onto that so you can build up enough cash to pay off the loan. Only do this if you can repay when the 0% deal expires, though.

Tixy

malcolmffc wrote: »

The OPs APR is about 11% based on the monthly repayments.
.

4000 over 4years at 11% APR would be around £103 a month. Think you might have done your calc over 3years whereas the OPs loan is over 4. 11% would be pretty cheap, 30% is not.