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Northern Rock Loan question

aidankelly
aidankelly Posts: 19 Forumite
Hi

I see Northern Rock have the best interest rate of 5.7% for an unsecured loan. I'm just wondering if I can pay this loan off early and increase my monthly payments later?
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Comments

  • BigDunc
    BigDunc Posts: 328 Forumite
    It should all be there in the T's & C's. What do they say?
    Fiscal drag, that's my problem. Too many people dragging on my fiscals.
  • aidankelly
    aidankelly Posts: 19 Forumite
    I rang them up and they said there are no early redemption charges and you can increase the monthly payments if you like. So it looks like it is fairly flexible loan.
  • mrcow
    mrcow Posts: 15,170 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Just check that they are not insisting that you take out their payment protection insurance as it can be expensive, especially if you are paying off early.
    "One day I realised that when you are lying in your grave, it's no good saying, "I was too shy, too frightened."
    Because by then you've blown your chances. That's it."
  • aidankelly
    aidankelly Posts: 19 Forumite
    No I think that the payment protection is optional.
  • Fairdo_2
    Fairdo_2 Posts: 442 Forumite
    As stated by Martin Lewis, be careful that you don't rely on it being 5.7% with Northern Rock, as they are renowned for not often accepting people on their best terms. You may then be offered the loan, but at a slightly higher rate.

    Barclaycard also have a loan at the moment available and would be more likely to offer you the 5.7% APR if you are a reasonable credit rating.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • aidankelly
    aidankelly Posts: 19 Forumite
    I rang Barclaycard and they said they charge a months interest for early repayment.
  • mrcow
    mrcow Posts: 15,170 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Another option is to take a look at a Cahoot flexible loan. You manage your loan account online and overpay what you like, when you like. You can also transfer money back from the loan again if you want to reborrow. There are no early repayment charges and interest is calculated only on your outstanding balance.

    Obviously if you're happy with NR's offer then go for it though.
    "One day I realised that when you are lying in your grave, it's no good saying, "I was too shy, too frightened."
    Because by then you've blown your chances. That's it."
  • aidankelly
    aidankelly Posts: 19 Forumite
    yeh thats definitely another option.
  • aidankelly
    aidankelly Posts: 19 Forumite
    I wonder if you apply for a Northern Rock loan and they give you a poor rate of interest or dont accept the application will this then affect a subsequent application to a Barclaycard loan?
  • LilacLillie
    LilacLillie Posts: 2,930 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    We've never had a loan before (with interest, other than mortgage), and are now looking at Northern Rock for a car loan.
    The last car was bought with an interest free, deducted from wage loan.
    Has anyone actually got one of these loans from NR in place at the moment? What are they like to deal with? Any advice about the whole question would be welcomed.
    LL
    We are all in the gutter but some of us are looking at the stars........................


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