loan how to get a better rate?

hellsbells120780

Hi All,
I took out an unsecured loan of £15000 last year to consolidate and pay off some big debts. The rate of the loan is 14.9% apr.
I am due to pay back 512.45 each month for 36 months. I started paying on July last year, and as of 1st March 2012 will have made 9 payments totalling 4612.05. It says on the paperwork that the "total amount I will have to pay is 18448.20. I am wondering if it is possible to get a new loan at a better rate and transfer and what the new rate would have to be to make it worth it? Bearing in mind that these are the early repayment conditions which I find very confusing?

It says..."If you make an early repayment, whether in full of partial settlement of you loan, of over £8000 or two or more payments totalling over £8000 in any 12 month period, we will charge you a compensatory amount in accordance with Section 95A of the Consumer Credit Act 1974. Where the period of time from the settlement date to the date fixed by your Agreement for you loan to be fully repaid is more than one year, the compensatory amount is 1% of the amount(s) paid in excess of £8000. Where the period is one year or less, the compensatory amount is 0.5% of the amount(s) paid in excess of £8000.

So, does the £8000 include my £512.45 each month or not? And how much of the £512.45 is paying off the capital and how much is just interest?

Basically, I'm wondering what size loan I would need and at what rate, to make applying/"re-loaning" worthwhile? Any help appreciated? Thanks.

[Deleted User]

What's your income? £30k of debt is a big chunk for a lender to take a risk on. And what's your credit report look like?

blacksta

Deleted_User wrote: »

What's your income? £30k of debt is a big chunk for a lender to take a risk on. And what's your credit report look like?

the OP borrowed 15k and not 30k - unless i am missing somethiing

hellsbells120780

my income is 44k gross. the loan was 15k, perhaps you are implying that when they make an assessment they double it or something? my credit report is good

blacksta

Do you know what your current loan balance is now. Getting a new loan or credit card is dependent on a number of factors.

1. Income against current debt profile
2. Credit record history

Depending on the above , you might be able to push for 0% super balance credit - ( allows payment to bank account)

[Deleted User]

blacksta wrote: »

the OP borrowed 15k and not 30k - unless i am missing somethiing

Just that they need ANOTHER £15k to pay off the first £15k. So for a time, there's £30k of debt sitting there, with no guarantee one will pay off the other.

CLAPTON

who is the loan with?

in general, a potential lender will see your debt exposture as the sum of your existing loan plus your new loan (you may intend paying off the old loan but they have no guarentee that you will)

they would probably look to you to have an income of 60k or so to sustain debt of 30k ish.

you can request a early settlement figure from the company (in writing) but the settlement figure after 9 months would be about 12,500 ish as you are currently paying about 150 per month in interest

blacksta

Deleted_User wrote: »

Just that they need ANOTHER £15k to pay off the first £15k. So for a time, there's £30k of debt sitting there, with no guarantee one will pay off the other.

thanks - I seee

[Deleted User]

hellsbells120780 wrote: »

my income is 44k gross. the loan was 15k, perhaps you are implying that when they make an assessment they double it or something? my credit report is good

It would be worth a try then. You may not get the full £15k, but perhaps something that would allow you to pay off part of the loan.

But savings will be relatively small, given you'll be a third of the way through the loan by then. But if you can get something sub 10%, there would be some worthwhile benefit.

hellsbells120780

You mean like they have to trust me to do with it what I say I will, sort of thing.
No, I'm am not sure of the present settlement figure, I wondered if it was possible to calculate it roughly ourselves? I might call up and ask it then.

CLAPTON

hellsbells120780 wrote: »

You mean like they have to trust me to do with it what I say I will, sort of thing.
No, I'm am not sure of the present settlement figure, I wondered if it was possible to calculate it roughly ourselves? I might call up and ask it then.

maybe read my previous post