Unsecured Flexible Loan

mrengland_2

I have seen a few people post a similar question to mine below, but as of yet I have not seen an answer. I would appreciate it if someone could respond to this thread with an answer, whether you work in the financial industry or just have experience with Northern Rock Flexible Loans.

So THANK YOU VERY MUCH IN ADVANCE to anyone who does respond to this thread answering the queries I have:

I would like a £25,000 unsecured flexible loan for home improvments.
Loan period for 10 years to keep ensure minimum monthly payments are low in case of any other financial issues I have, however I know I will be over paying as I would like to pay the least amount of interest as possible.

Northern Rock have guarenteed an Unsecured Personal Flexible Loan for me at 6.4%, which I am happy with. However I am not happy with their FAQs on the paperwork they sent to me and the explanations on the phone they have given me to the FAQs, they are being very vague.

The FAQs states:

Q. Are there any charges if I repay the loan early?
A. There are no early repayment charges so you are free to pay off your loan whenever you want at no extra cost.

Q. Can I make extra payments to my loan?
A. Yes you can make overpayments at any time. Your monthly payment will not reduce and the total amount of interest paid will remain the same unless you settle your loan in full. As overpayments reduce your outstanding balance, you may be able to pay the loan off earlier than expected as your loan term will reduce in line with any overpayments made. If you do pay off the loan early you may be entitled to a rebate of interest, which is calculated using the formulae prescribed by the Consumer Credit Act 1974.

It's the bit about "may be entitled to a rebate of interest" that concerns me.

I' have researched into this with Northern Rock and online, but can't find anything.

What's the point in paying back a loan early if there is a chance I will not reduce the total amount of interest I have to pay in the loan longterm?

I have not accepted this particular loan because they couldn't make it clear to me where I stand on this.

Are there any other companies that might offer a similar facility?

By the way...I have no existing loans or mortgages and no credit card payments.

Any help would be appreciated in advising me on this matter...and I'm sure all the other unanswered threads similar to mine.

Apologies in opening another thread, but I thought this was the only way it could highlight my situation and many others in the forum.

Thank you very much for your time and your quick reponse in advance.

Kind Regards,

Mr England

ellives

Hi

Funnily enough, I have just had the same dilemma and have literally just plumped instead for GE Money's unsecured PL at 6.3% - all went through easily - pheww!

Where are you at?

mrengland_2

ellives wrote: »

Hi

Funnily enough, I have just had the same dilemma and have literally just plumped instead for GE Money's unsecured PL at 6.3% - all went through easily - pheww!

Where are you at?

I was just advised today that its not best to make over payments with Northern Rock, instead save up the money you were planning to make the over payments with and then pay off the loan in a full settlement. Northern Rock will not charge extra interest that way and you will not need to get a refund on the interest as you had paid the minimum a amount.

I still require a flexible unsecured loan as I will hopefully be settling the loan before the original period.

Good luck on your loan

...I have a quote from Northern Rock and don't want to risk another credit check so I think I will be going for this quote.