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Getting a lower apr
I need a personal loan for £2100 and my bank indicate that for that loan value a 7.5% APR applies.
If the loan is for a higher value of £7000 the APR reduces to 3.4%.
My bank also allows overpayments.
I was wondering if I could take out £7000 to get the lower APR then pay back (overpay) £4900 to effectively get the £2100 at the lower 3.4% APR?
Anybody done this and does it work?
If the loan is for a higher value of £7000 the APR reduces to 3.4%.
My bank also allows overpayments.
I was wondering if I could take out £7000 to get the lower APR then pay back (overpay) £4900 to effectively get the £2100 at the lower 3.4% APR?
Anybody done this and does it work?
0
Comments
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You could. But confirm whether your payments will stay the same or can be recalculated over the term.0
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Check the loan T&C's regarding overpayments before you opt for the larger loan.
Not all loans allow penalty free overpayments.0
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