I think my M&S Loan was mis-sold to me

noz85

paddyrg wrote: »

Basically, as you've probably summarised from above, a lump-sum will either reduce the payments or the term of the loan. M&S reduce the term, it seems. Overall it will still be cheaper for you - cheaper in fact than reducing the monthly payments overall!

I'm sure you're right. But in my case cheaper isn't better as I need to reduce the payment amount to make it affordable.

electrobix99

How about keeping the money to one side to supliment your monthly payment. If you put it in an instant access savings account you would be earning some of the interest back at least.

Tixy

Presumably the T&Cs don't specify what will happen with regards to overpayments, i.e that they will reduce the term of the loan rather than the amount of the repayment?

It seems most common from lenders that overpayments reduce the term of the loan but repayments stay the same, so it would come down to what was exactly said on the phone call.

Buy the way - zopa's APR includes/takes into account the arrangement fee. So if the APR is cheaper on zopa than x, then you will pay less overall in interest & charges combined over the course of the loan.

noz85

electrobix99 wrote: »

How about keeping the money to one side to supliment your monthly payment. If you put it in an instant access savings account you would be earning some of the interest back at least.

This could very well be what I end up doing. :beer:

paddyrg

noz85 wrote: »

This could very well be what I end up doing. :beer:

Sounds like your best solution if you want to reduce the payments as opposed to term. I understand your reasons, just wanted to be sure you knew it'd cost a bit more overall so you'd be an informed position to make a decision :-)

blacksta

Savvi is the online name for Hitachi credit. I would watch out that the rate you are offered is not flat rate.