Delayed repayment at start of loan

NottinghamLad

Hi


I have been looking at low-rate personal loans for a car I am about to purchase for 25k.


I will be mortgage free at the end of the month but also don't want a loan for 25k as the monthly payments will be higher then I want and also the resulting interest I will pay. I want to keep repayments below £400 per month if possible


So i think an ideal solution would be to get a loan with a delayed repayment (upfront holiday) so that i can save the money i would normally use for paying a mortgage (1.5k per month) to reduce the loan i will need - to say 20k..


Sainsburys Bank has a rate of 3.1% (which is very competitive) and it also allows a 2 month repayment holiday at the start of the loan.


The question is: Are there any other providers that give a upfront holiday greater then 2 months whilst still having a competitive rate (less then say 4%)?

Nearlyold

Couldn't you just
a) wait 2 months before you buy the car or
b) buy the car now and then make overpayments with your first two regular payments.

Or am I missing something?

A repayment holiday costs you more in interest.

forgotmyname

How will you pay off £5k off in 2 months if you only had a mortgage of 1.5k a month, and need to pay another month before it ends?

Plus 2 months interest where the amount reduces by zero?

If you want a 20k loan get a 20k loan. If you want to spend more save or get a larger loan?

DCFC79

Could you not buy a cheaper car and save the extra for when you do actually need it.