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Loan - can I?
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Hi all,
I’m possibly considering getting a loan of £6k for a new car, but I’ve noticed that loans over £7.5k attract lower interest rates.
I’m possibly considering getting a loan of £6k for a new car, but I’ve noticed that loans over £7.5k attract lower interest rates.
Do you know if it’s possible to borrow say 7.5k over 3 years to secure a low rate, but then pay back £1.5k almost immediately? If I did this, would the monthly rate drop pro rata or stay the same this reducing the loan term?
Cheers in advance.
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Comments
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Yes you can
Which of the two scenarios then takes place depends on the lender.
Most common is that the monthly repayment stays the same.1 -
Many thanks, so it’s likely that the monthly repayment would stay the same but the term reduce? Hmmm ideally I wanted the lower repayment rather than shorter term.I’ll check with the lenders if decide to go ahead.0
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