APR on Flexible loan

opinions4u

Simongo1 wrote: »

..... Also a big reason I am going to go for it is the equal liability I receive with the finance.
I asked Hitachi about this and they confirmed that by law (some section of the consumer credit act) that they are equally liable for the gaurantees and service levels for the whole guarantee duration whether I pay off on day one or let it run the full term.
You always hear horror stories about windows so it gives me a little peace of mind knowing that if I do have any problems, I can pick up the phone to Hitachi and they are legally liable.
I asked the lady if I would get this cover if I took out a personal loan and she told me that I wouldn't - Apparantly you only get this cover when you purchase on a credit card or finance as the credit card/finance company pay on your behalf, they are liable.

Not really worth paying 20% interest for S75 protection though.

It's used as a big sales pitch by these companies.

Pay £1 deposit on a credit card and you get the same protection. Fund the rest from cheaper finance elsewhere (or save up for a couple of years and pay cash then).

Simongo1

opinions4u wrote: »

Not really worth paying 20% interest for S75 protection though.

It's used as a big sales pitch by these companies.

Pay £1 deposit on a credit card and you get the same protection. Fund the rest from cheaper finance elsewhere (or save up for a couple of years and pay cash then).

But I won't be paying anywhere near 20% interest if I make lump sum payments as I intend to do.

I need the windows and doors replacing now so waiting isn't really an option. I'm borrowing £6k and will be able to pay £4k off as soon as the windows and doors are installed and the account is open and the remaining 2k shouldn't take me long to clear. So in theory, I'm borrowing £6k, paying off £4k straight away and then only paying monthly interest on the remaining £2k which I'll be chipping away at and have cleared pretty quickly.

Peelerfart

Sounds like you've made your mind up OP.

Good Luck

Apples2

Ditto, good luck to you.
I'm not sure it is something I would go for but your plans seem sound.
I hope you do manage to overpay as planned and the APR is fixed (these things do have a habit of creeping upwards).

Please keep us updated though, it would be nice to hear about someone with plans like this which work out well.

Simongo1

Peelerfart wrote: »

Sounds like you've made your mind up OP.

Good Luck

Thanks Peerlerfart

I don't go into these things lightly (hence me ringing Hitachi and speaking to the head office)

I do believe it's a good deal as I am in a position to pay those lump sums. If I do encounter any problems, I will obviously report them on here.

opinions4u

Have you actually made sure that, while overpayments are accepted, they reduce the debt and interest accrual immediately?

Many loan agreements allow overpamyents but continue to accrue interest on the balance that would have been outstanding had only the contractual payments been made. So it only saves you interest on the back end of the agreement when balances and interest accrual would have been lower.

Not that I don't trust double glazing salesmen ...

But I won't be paying anywhere near 20% interest if I make lump sum payments as I intend to do.

It will still be a 20% annual rate.

Simongo1

opinions4u wrote: »

Have you actually made sure that, while overpayments are accepted, they reduce the debt and interest accrual immediately?

Many loan agreements allow overpamyents but continue to accrue interest on the balance that would have been outstanding had only the contractual payments been made. So it only saves you interest on the back end of the agreement when balances and interest accrual would have been lower.

Not that I don't trust double glazing salesmen ...

It will still be a 20% annual rate.

Yes I checked with Hitachi and they confirmed that overpayments reduce the debt immediately and that interest is calcuated daily and added at the end of the month - Therefore if I make a payment mid-way through the month, the balance is reduced immediately which will reduce the interest.

I know what you mean about double glazing salsmen - Two out of the three tried to pressure me into buying now. I had my guard up when the third one arrived but within 5 minutes I trusted him. He was a retired school teacher who didn't lke retirement so went into sales "to keep his brain active" He didn't force me into the finance just spent a few minutes showing it me and letting me decide for myself.

CLAPTON

facts and figures always make it easier

whats the sale price of the windows
whats the discount for taking their finance
how much are you borrowing?
how long do you expect it to take to pay it off

jamesperrett

I would strongly suggest that you give a few local companies a try before going for one of the big national companies. They're often much more competitive.

James.

AMILLIONDOLLARS

I would get everything confirmed in writing, It's funny how the people you talk to about queries like these, suddenly disapear when you need them!!

AMD