Should i swap my loan?

seb1982

Hi

Wondering if anyone can offer me any advise?

I currently owe around £7500.00 on my Cahoot Flexible Loan, this is at 8.5%, I have calculated that I should be clear of this debt by December 2006. I am however wondering if it would benefit me and save me any money if I was to try and swap my loan to the Northern Rock loan at 5.7%... I'm not 100% sure that i would be accepted for the Northern Rock loan though as I have a feeling that my credit rating isn't very good.

Any advise would be gratefully received.

mrcow

You may also find that NR only offer you a loan with compulsory PPI (which is VERY expensive, and they'll add it to the balalnce of your loan). Please read other threads ref NR for more info.

If your credit rating isn't that good, you won't get the 5.7% offer anyway. It will be much higher. You could try Egg, but again will not be guaranteed to get their best rate.

IMO, as you already have the Cahoot Flexible Loan, you'd be much better chucking everything you can at it. There are no penalties and you are in complete charge. Take a look at your monthly budget, even if you can squeeze £35 per month extra to pay this loan off, that's over £100 per quarter. With enough overpayments, you may find that you reduced overall interest inline with a loan with a much reduced APR as you'll only be paying interest on the outstanding amount.

Good luck.

margaretclare

seb1982 wrote:

Hi

Wondering if anyone can offer me any advise?

I currently owe around £7500.00 on my Cahoot Flexible Loan, this is at 8.5%, I have calculated that I should be clear of this debt by December 2006. I am however wondering if it would benefit me and save me any money if I was to try and swap my loan to the Northern Rock loan at 5.7%... I'm not 100% sure that i would be accepted for the Northern Rock loan though as I have a feeling that my credit rating isn't very good.

Any advise would be gratefully received.

Hi

I had a flexible loan with cahoot at the higher rate of interest. I changed to a fixed-rate loan with them, exchanging the 8% rate for 6.5% over 3 years. I now have 19 months to go.

As your loan is planned to be paid off by the end of next year it may not be worth doing anything with it. You could always ask cahoot, though.

Aunty Margaret

oh_no_5

Nationwide do one with a rate of 6.9 for everyone.

Iv'e heard it's not worth bothering moving loans unless you can get one for 2 percent less than your present one.So you would have to look carefully at the monthly repayments.With no set-up fees it's always worth it even if it saves you only a few quid a month.Better in your pocket than in the capatalist bully boys !!

If your credit score is a bit iffy then NR would charge a lot more than their headline grabber rates any way.

Good luck.

seb1982

Thanks everyone for the advise, it's much appreciated and has been a great help.