Combining Loans?

Gemmzie

Two loans @ 7k taken out 03/06

HSBC = £10,000.37 (6.9% + PPI of £1,745.41) = £166.67 monthly
IF = £8,257.20 (6.4%, can be overpaid) = £137.62 monthly

We've already tried cancelling PPI, they won't do it.

The settlement figure for HSBC at month 15 (05/07) was £6,686.72

Is it worth combining the two loans to IF so that they can be paid off more quickly? Or just overpaying IF?

I can't get my head around how much we'd save in principal (as IF have to say yes!)

Any help would be hugely appreciated

Gemmzie

*bump*

Anyone?

mightymouse

Hi

Fying pan and fire spring to mind, my thought is to do nothing until you have explored all the options.

Why do you want to cancel the ppI, is it now because you realise it was expensive or is it something else.

you need to talk to an experienced person say independent financial adviser to re-check why policy is non cancellable with no possible rebate of premium.

My memory says it might be possible but individual case on its merits etc.

Consolidation means early redemption costs v longer repayment but lower payments.(more expensive).

Why pay so much to hsbc then scrap it?

sorry cant help beyond this

CLAPTON

Is 10000.37 the sum of the loan (how much ) and the PPI or is the the amount of loan and the PPI has to be added?
how many months have you paid and how many are let on the loans.

in the end all you can really do is take the 15 month setttlement figure and see whether you can get a new loan over the 45 (??) months remaining at less than 166.67.. if you can then it will save you money and if not then keep the current situation.

as far as the PPI is concerned i would suggest you write complaining to HSBC and saying that if they won't refund the PPI then can they provide a 'final response letter' so you can complain to the Financial Ombudsman Service'.

mightymouse

Hi

check out this site if you have not already done so

http://forums.moneysavingexpert.com/showthread.html?t=117175

hope it helps

Gemmzie

CLAPTON wrote: »

Is 10000.37 the sum of the loan (how much ) and the PPI or is the the amount of loan and the PPI has to be added?
how many months have you paid and how many are let on the loans.

They were both £7k loans, so the £1000.37 figure is with PPI and interest.
Both started March 05, both 60 months

in the end all you can really do is take the 15 month setttlement figure and see whether you can get a new loan over the 45 (??) months remaining at less than 166.67.. if you can then it will save you money and if not then keep the current situation.

If IF allow the same repayments then it'll save just under £1k

as far as the PPI is concerned i would suggest you write complaining to HSBC and saying that if they won't refund the PPI then can they provide a 'final response letter' so you can complain to the Financial Ombudsman Service'.
Will pursue this

Thanks Clapton

Gemmzie

Any more feedback?

Luke

Are you assuming that IF will just let you extend your current loan by the amount needed to pay off HSBC?

Because it would be a whole new loan and probably at higher interest than you are paying right now.

Gemmzie

They have offered us an extension to the existing loan at the current rate