We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Loan help
This might sound a bit odd, but I need to lend 5 grand, however if I lend 7.5 grand I can get lower interest rate, this seems too simple so probably a stupid question but could I lend that and pay 2.5k back straight away? And be on a lower interest rate for the remaining 5k?
0
Comments
-
Who do you want to lend it to?
And more importantly, do you trust them to pay you back?1 -
I think the OP is confusing leading with borrowing.0
-
Ahh right yeah where I’m from we would say lend, but yeah I’m after a 5 grand loan for myself0
-
You can borrow the larger amount to get the lower rate and repay the surplus, but you'll need to factor in the early repayment charge.
Most lenders will then maintain the same normal monthly payments, but reduce the term. Some will allow a reduced amount over the same term, so you'd need to know if this is a critical factor.0 -
The OP's idea makes sense. It can only be answered by looking at the terms & conditions with the loan that the OP will take out. Any answer from the forum will be a guess / typical only and may not apply to the actual product in question.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards