loan

ladyfancy

hi everyone

i have a loan set at 7.9% and it finishes in feb 2023, im wondering how much i would save if i got a loan at 2.%9 which i have been offered and turned down is it worth the hassle of changing everything as its only 5%saving or should i leave it as i will only be saving pennies ?

[Deleted User]

You'd have saved 63% of the interest if you'd taken it and settled the other loan. 

The precise sum in pounds that you'd save obviously depends on your balance.

ladyfancy

i owe around 5k having just looked at a previous letter from when i asked for a breakdown, thanks for reply

macman

Paying 5% less interest over the remaining 2 years will save you about £256 in total, so certainly not 'pennies'.

Are you sure it's a genuine 2.9%, or just a general '2.9% representative'?

ladyfancy

HI 

will double check thanks for the help

macman

Use any loan calculator, it will show the difference.

enthusiasticsaver

If it really is 2.9% on the new loan and you have £5k outstanding it is worth it but bear in mind not everyone gets offered the headline rate.