Loan help

DavidJ103

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? 

[Deleted User]

Who do you want to lend it to?

And more importantly, do you trust them to pay you back?

sambaird

I think the OP is confusing leading with borrowing.

DavidJ103

Ahh right yeah where I’m from we would say lend, but yeah I’m after a 5 grand loan for myself

[Deleted User]

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.

Grumpy_chap

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.

macman

sambaird said:

I think the OP is confusing leading with borrowing.

In that case, I'd like to borrow £7.5K and receive some interest on it: can anyone help me?