25k Loan deferred payments and settlement figure help

riverboat2001

Hi,

This question, is not down to laziness, my maths is very poor, and i need help with some figures.

I want to get a 25k unsecured loan.

The reason for this is that i want to buy a specific item, that i've been looking for, for quite a while (rare)

Anyway, in approximately 6 months time, i will have the money to pay off the entire loan.

So i was thinking of going to Tesco, as i have a small credit card with them, and they all seem to be about the same rate on that amount.


I've read the bumpf about deferred payments, but don't really understand it, and i can't work out how much they'll charge me for early repayment.


My plan was, take out the loan, buy my item, defer the payments for as long as possible and repay the loan by June next year.

Apples2

So you want a Twenty Five Thousand Pound loan but not make any repayments at all for nearly a years time?

They'll be queuing up to lend to you.

Better_Off_1983

No chance... no chance of even getting a unsecured loan of £25k these days!

riverboat2001

Apples2 wrote: »

So you want a Twenty Five Thousand Pound loan but not make any repayments at all for nearly a years time?

They'll be queuing up to lend to you.

No, i was looking to defer the first three payments, then make all the correct and due payments, up until such time as my money comes through?

Was wondering about putting the first three payments into some sort of savings account, but can't work out what the bank "charges" for the courtesy of deferring those first payments.

riverboat2001

Better_Off_1983 wrote: »

No chance... no chance of even getting a unsecured loan of £25k these days!

Really, what sort of criteria would i need to meet?
I don't want to apply and have it show on my file if i have no chance.

riverboat2001

The dealer is offering me a secured hp agreement and he told me the interest rate was 6%.
But i thought i would have more bargaining power if i could get the money up front.

Apples2

Car dealer interest rate of 6% is an Apr of about 12%.

Already you can detect your friendly car dealer is trying to pull the wool over your eyes with his 'interest rate' waffle.

If you do defer those first payments, the interest will still accrue right from the start so you would pay heaps of interest, balanced against about £0.03p you would have gained by saving those payments.

Borrowing the whole amount for a car purchase is foolish. How on earth can you repay 30,000 now when you haven't managed to save anything like that figure in the past?

If you are coming into money in 6 months time then wait and use that. I guarantee you though, once you have that figure as cash in the bank, you won't be giving it all away for a car.

SeanG79

If your credit profile is "clean", you can get much better rates than 6% on car finance.

You will be charged interest on the full size of the loan from the day it goes live, if you request deferred payments on a personal loan of £25k, the lenders will run a mile, not to mention that £25k in this climate is not easy to be approved for. Vehicle finance will be easier to attain but be careful of the dealers rates...

bargainbetty

To obtain a £25k loan you would probably need to have an income in the region of £50k p.a. and no other debts. The threshold for unsecured debt is loose, but there, and there is very little chance of getting that kind of money without an excellent income or having it secured.

£25 for a vehicle, even rare, isn't sensible. Unless you can guarantee that it is a showpiece and will not devalue over the loan repayment term. It's nice that you are likely to come into money, but until it is in your hand, I wouldn't recommend you go spending it on cars.

somethingcorporate

What is your salary? This could be a non-starter.

Is there any reason you cannot wait until you have the money?

I agree you will want to part with it less when you have those zeros all in your bank and no-one knocking on the door for it.

Unless you are awash with cash spending £25k on a depreciating asset like a car is foolish at best. It could be financial suicide at worst.

hoggums

That money is burning a hole in your pocket before you've even got it. I suggest you think carefully about how you are going to spend it and not waste it on frivolous items to look big in front of your mates.