flexible loan advice

nixy

I am looking for a flexible loan. Not just so that i can settle it without penalty but so I can pay large lumps off without penalty. Basically I am buying a car but need to do so BEFORE selling my current one so I want to borrow the whole amount for the car and then pay off several thousand pounds when I sell the current car. Any ideas?

cheers.

Rafter

Egg maybe?

Other thing is to get two loans - one for the real borrowing and one for the bit you plan to repay quickly when you sell your current car?

That way you don't pay a big interest premium.

For example......

Apply for two loans, one for 5k that you plan to pay off and one for the real borrowing of £10k.

Make sure the £5k one has no early repayemnt penalty and just repay it after a few months.

If you have a good credit rating and want to get the sub 6% best buy rates you will need to accept the RIP OFF OVERPRICED INSURANCE. One you have your best buy interest rate offer, ask them to remove the insurance (WHICH THEY WON'T LIKE) and you have a great deal. They cannot withdraw the insurance offer just because you cancel the insurance (WHICH IS FOR YOUR BENEFIT NOT THEIRS) otherwise they will be breaking FSA advertising and other regulations.

Good luck.

R.

mrmajika

Lloyds TSB loans allow penalty free overpayments. The interest is calculated daily and applied to the loan account monthly. Your direct debit amount always stays the same. Therefore any overpayments reduce the balance and the term of the loan.

The only penalty involved is an early settlement fee which is 58 callendar days worth of interest, capped at the £250 mark. So long as you leave the last 2 direct debit payments in place, you would never be charged this.

Hope This Helps.

nixy

sound advice from both the above - thanks. I never even thought of two loans - I don't suppose there's any reason why this would be frowned upon or anything? I was thinking of cahoot at first but something funny's going on there - they emailed a response to my enquiry today to say they are no longer offering loans or credit cards and to go to abbey national their owner!

chani1

your right cahoot are no longer offering loans of credit cards i was told this is because of the economical climate and the cost of lending is so high with the rates they were offering (5.8/5.9) are not generating enough cash for them so before they decided to scrap it the put there typical apr to 10.9 which proved unpopular for obvious reasons so decided to not to continue as they wern't making enough profit. Just incase anyone was wondering!!

mrmajika

chani1 wrote:

your right cahoot are no longer offering loans of credit cards i was told this is because of the economical climate and the cost of lending is so high with the rates they were offering (5.8/5.9) are not generating enough cash for them so before they decided to scrap it the put there typical apr to 10.9 which proved unpopular for obvious reasons so decided to not to continue as they wern't making enough profit. Just incase anyone was wondering!!

That's interesting. I notice on the website there is no longer any mention of the credit card. Clicking the loan link pops a message saying that they will transfer you to the Abbey site.

nixy

Is there such a thing as a flexible loan with deferred payments? That way I can sell my car before I have to start paying the loan. Or is that just asking too much?