Interest only personal loan??

Jordie1983

Hi everyone.
Was just wondering if there was any way of getting an interest only loan on £25'000, which i would then be paying off in 18months when i can cash in my Standard Life bonds after they demutualise.

Any help would be appreciated.
Thanks.

Rafter

Nope,

Nobody would give you an interest only loan without some sort of security, unless it was for a fairly small balance like an overdraft and it certainly would be variable rather than fixed rate.

You best option is possibly to get an interest only loan over the longest period possible - (probably 10 years) and fund the repayments from other savings or through another loan.

£25k is probably large enough that it is worth talking to your bank manager about some sort of secured loan arrangement, either on your house or on the bonds themselves. Sort of like a bridging loan, although you may not like the interest rate they offer.

R.