Have i been fobbed off?

MKDave

I have a loan with Northern Rock which has 7.5 years left to run. Settlement figure is £14,000 and the apr is 8.9%.

When i spoke to them about lowering the apr they said to do so would be a "like for like" new loan, and as I had spent 2 years paying the "front loaded" interest part of the loan I wouldn't necessarily be better off.

They recommended making overpayments as a better way of lowering the balance.

Should i push for the 6.4% that they are currently offering? or try for a 6.1% Barclays loan.

When I look at the figures the on their website my monthly saving would be £15, so times 12 = £180 per year saving.

I'm confused, please can anyone help?

jonesMUFCforever

Do Barclays offer a loan for the time period that you are looking for.

I think the advice that you have been given to overpay is a good one.

chani1

i think so too even though you would be paying a cheaper apr and saving money that way you have to think if you have payed most of the interest off with it been front loaded you re structure it and you will be paying the interest again as you will be starting from scratch. By making over pymts you will be reducing the balance and term without paying extra interest.

MKDave

I'm still thinking i'd be better of re-doing the loan and overpaying on that one instead?

Can anyone else help?

mountainofdebt

Another thing to consider is the Barclays rate a typcial one? ie is there a chance that you won't get that rate but a higher one?

jonesMUFCforever

MKDave wrote: »

I'm still thinking i'd be better of re-doing the loan and overpaying on that one instead?

Can anyone else help?

Read post# 3 again!

You would be better off overpaying existing loan. That rate you have is pretty good.
The margin of saving that you MIGHT get is not worth it IMO.

miha_2

MKDave wrote: »

I'm still thinking i'd be better of re-doing the loan and overpaying on that one instead?

Can anyone else help?

whay would you pay interest again

You are not making any savings if your interes has been paid.

think about it this way (if your interest has been paid):
if you stick to your first provider you will only pay at the moment what you have borrowed

if you change you will be pay interest + the amount you've borrowed

So ... which one is better???

MKDave

ok, ta. i think i'll mull it over for a while. But will start with the overpayments now that my Credit Card is gone.

Thanks!