Top up loan?

Gambler101

If anyone contacts you about an offer, its always in their interest and NEVER yours!

That applies to everything in life!

[Deleted User]

It's not a top up loan.

It's refinancing the original loan.

[Deleted User]

Carrben01 wrote: »

looking at the email it doesn’t state I am guaranteed to get the advertised rate, see below quote from the email:

Exactly.

The phrase that matters is "we may".

Once you are siting at the desk, you are already half way to taking the loan, irrespective of the APR.

Silvertabby

If the original loan wasn't secured (and it doesn't sound like it was) then the new offer won't be either. As Bedsit Bob says, you may not get the lower rate mentioned in the letter - meaning you probably won't as you are retired and are on a fixed income You may find that you end up being offered the top up loan at the same (or very near) rate as your existing loan.

nirajn123

Nige64 wrote: »

Although I go brain dead when it comes to working things out, I think I've found the answer. At the moment we're paying £2k interest on this £6 loan. If we go for the new loan, we'll be paying £800 interest on a £10k loan, so if you add together the £800 + the money we've already repaid, £1330 that totals £2130 interest on a £10k loan, so it's only going to cost £130 more for the extra £4k.............

I think.

Purely from calculation perspective it is so much easier to consider as two separate transactions -
1. Borrowed £6000, paid £566 interest and £769 principle amount (total of £1335 paid over 10 months) - Balance £5231 [You will settle this with part of a new loan] - Rate 12.7% as you say
2. New Loan - Total £10,000, Net Loan amount factoring for settled balance of #1 £4769. Interest due over 5years £800 - Your monthly payments will be for this new loan + interest (@3.7 =(£10800)

Does this makes sense? just making sense of these numbers for you and not advising for or against taking this up.