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Loan Advise please
ajbrynoffa
Posts: 418 Forumite
in Loans
hello,i took out a loan with alliance and leicester in january for £10000,the payments are £223 per month with payment protection.Now however i have the opportunity to buy a small business for which i need £5000.Would it be better to get a £15000 loan from somewhere and pay the original loan off and still have the 5 grand i need or would the a&l increase the loan i`ve got.I don`t want to be paying anymore per month so i would need to take it over a longer period(its currently 5 Years)...sorry if i seem long winded but i could really do with some advise!!
A shadowy flight into the dangerous world of a man who does not exist.
A young loner on a crusade to champion the cause of the innocent,
the helpless, the powerless, in a world of criminals who operate above the law.
A young loner on a crusade to champion the cause of the innocent,
the helpless, the powerless, in a world of criminals who operate above the law.
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Comments
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I think it all depends on whether the rule of 78 applies to your loan or not.
If the loan is the sort where the interest has been added to the principal and your installments are paying off bits off both then any settlement figure will include a high proportion of interest and so may not be worth you settling this loan early. (you may also have to pay the PPI although I personally think this is unfair - after all why should you pay for a policy that would cover you for non payment of a loan than doesn't exist?)
However if early redemption of the loan will only involve you paying back the prncipal and an interest penalty charge then it may be worth doing.
The only way really for you to know for definite (and perhaps for someone to advise you) is to get a redemption figure from A&L so all figures are known.
The on2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0
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