loan/hp interest advice

garryt

It's a long time since I had a loan or finance but I seem to remember that with a bank loan you pay back capital and interest at the same time, but with hp you pay all the interest first then start repaying capital. Is this the case?

Thanks

[Deleted User]

No. .

garryt

Is there such a product where the repayments can be structured this way then?

[Deleted User]

No. Loan repayments pay back a mix of capital and interest each month. Most of the first payment is interest and most of the last is capital.

opinions4u

garryt wrote: »

Is there such a product where the repayments can be structured this way then?

Why on earth would you want this?

garryt

Tax reasons, I need to run it past my accountant but I believe if I get a loan/finance for a car I can put the interest against it plus 8% (based on emissions) of the value. The more interest is paid up front the less I pay in tax, then I could change the car when capital becomes due and I'd then just need to find the shortfall due to depreciation, but I'd already have 8% per year towards that.

I might be talking rubbish but it seems to work!

Eonel

garryt wrote: »

Tax reasons, I need to run it past my accountant but I believe if I get a loan/finance for a car I can put the interest against it plus 8% (based on emissions) of the value. The more interest is paid up front the less I pay in tax, then I could change the car when capital becomes due and I'd then just need to find the shortfall due to depreciation, but I'd already have 8% per year towards that.

I might be talking rubbish but it seems to work!

Nice thought, but if this were possible all self-employed people would be driving expensive new cars each year instead of paying anything to the tax man.

The tax man may have something to to say about this