Natwest loan question (overpayments)

davebristol1

Hi all,

iv'e spent a few hours surfing the internet for an answer to my question to no avail
Basically i'm looking to buy a new car, went and looked at one on Saturday and put a deposit down on one.
i am going to be funding the purchase with my vehicle as a part exchange (£900) and the remainder with a personal loan (£6600)
i have my mortgage and all bank accounts with Natwest and they seem to be offering loans at the same rate as most lenders at the moment so to make things easier i have decided to go with them (also can get my money in 24hours due to being an existing customer)

Here is my question...

As stated i need £6600
this is lent out at 11.9% APR (11.9%PA)
which would be £190.99 per month for 42 Months
Total repayable £8021.58

if i was to borrow £7500 (£900 more than i need)
it is 6.4% APR (6.4%PA)
this would be £199.11 per month for the same period
Total repayable £8362.62

Does anyone know if Natwest Loans can be overpaid when you have a little extra cash ? and if so does this affect the repayments or length of the loan ?

i was thinking that i could get the loan for £7500 and pay the £900 back straight away therefore resulting in me having the loan that i need for the better rate ?

i'm sure that they have already thought of this and put some kind of rules in so that this isn't possible but due to it being a Sunday there is no one i can talk to and starting work early tomorrow means that i cant actually phone them due to my working hours

my other option would be to put the extra cash into my isa for a while but i'm not really sure if this would benefit me or cost me (i'm not very good when it comes to working this sort of thing out:o)


Any help would be greatly appreciated
:):):):)
Dave

Caz3121

These are the representative rates so you may not actually get either of those rates
Info on overpayments can be found under "Make an extra repayment" here http://www.natwest.com/personal/loans/g1/already/service-options.ashx