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Variable or fixed graduate loan?
I'm going back to uni in september to do a two year law course and have just been to the bank to sort out my loan to do so.
I'm borrowing £11k over two years, which is fine, but at the question, do you want variable or fixed my response is basically 'uh?' i have no idea! the fixed rate is currently 7.65% and variable 7.5% at the moment. :eek:
Which one do i go for?? Help!
I'm borrowing £11k over two years, which is fine, but at the question, do you want variable or fixed my response is basically 'uh?' i have no idea! the fixed rate is currently 7.65% and variable 7.5% at the moment. :eek:
Which one do i go for?? Help!

0
Comments
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interest rates are more likely to go up in the short term than down so i would suggest you go for the fixed.
However, are there any penalties for early repayment if for any reason your finances change and you want to pay it off early?0 -
Variable rates are cheaper but you have the possibility of them putting up the rate. Given interest rates seem to be on the up it would be a good idea to fix it, but its totally up to you. You'll have to work it out based on your circumstances i.e. can you afford a small increase in monthly repayments etc.
IIRC alot of people have recently been stung by Cahoot and Mint on their loans as they upped the rates.Starting debt @ LBM: £8436.51 (8/5/7)
Barclaycard: £5804.52 (May 07) - 6.9% LOB Now: £5315.25
Egg: £1640.99 (May 07) - 1.9% May 08 - Now: £1242.69
[strike]Barclays O/D: £991dr (May 07) - 16.9% - Now: £0.00[/strike]
Debt August 07 £6557.94
Aim: To Clear Barclays OD by Nov 2007! Realistic DFD: August 20090 -
interest rates are more likely to go up in the short term than down so i would suggest you go for the fixed.
However, are there any penalties for early repayment if for any reason your finances change and you want to pay it off early?
There's no charge for over payments or early repayment.0
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