High interest loan

FTbuyer18

Hello, i took out a 2nd loan a few months ago from Halifax who i bank with, naively i assumed i would be getting a good rate as my initial one is very good. I did the calculator where it tells you how much interest you save, and for every £10 i over pay i save £5 interest! Other than just ploughing all spare cash into paying this loan off early, do i have any other options? There are 35 months left on the term. Lesson learnt by me. Thanks.

Caz3121

FTbuyer18 said:

naively i assumed i would be getting a good rate as my initial one is very good

what is the APR?

FTbuyer18

Caz3121 said:

what is the APR?

14.9% APR.

RandomUserID

FTbuyer18 said:

Caz3121 said:

what is the APR?

14.9% APR.

So not particularly high interest then.

DrEskimo

You're unlikely to be accepted for a lower rate loan to consolidate this one, as they will take into consideration your current borrowing in addition. 

So your best bet is to cut costs and pay down the loan as quickly as possibly. 14.9% is certainly not massive, but it isn't great....

sammyjammy

FTbuyer18 said:

Hello, i took out a 2nd loan a few months ago from Halifax who i bank with, naively i assumed i would be getting a good rate as my initial one is very good. I did the calculator where it tells you how much interest you save, and for every £10 i over pay i save £5 interest! Other than just ploughing all spare cash into paying this loan off early, do i have any other options? There are 35 months left on the term. Lesson learnt by me. Thanks.

So where do you think the other £5 is going?

FTbuyer18

DrEskimo said:

You're unlikely to be accepted for a lower rate loan to consolidate this one, as they will take into consideration your current borrowing in addition. 

So your best bet is to cut costs and pay down the loan as quickly as possibly. 14.9% is certainly not massive, but it isn't great....

Thank you for the advice and not just posting a snarky comment without any... I haven't taken loans out before this one other than my mortgage so wasn't sure what is considered high, I just know this is higher than the other. I assumed paying down as quickly as possible was my best bet so thank you for confirming this

macman

Your mortgage is a secured loan. this one isn't, so it's always going to be at a higher rate.