A & L Further Loan - OPINIONS????

sallan2000

Hi,

As an Alliance and Leicester mortgage customer I have been offered a FURTHER LOAN which i was thinking of using for home improvement.

Has anyone had one of these and what are your opinions of it?

Can anyone suggest better deals that the variable rate of 6.84 %

Thanks

Steve

mrcow

Well you've asked for opinions......

You say they've offered you a loan, which means that before this, you weren't considering it?

Okay, you are now thinking about some home improvements, but do you really think that saddling yourself with a massive (I note that the minimum amount offered is £5k on their website) debt is the best way to go about it? What kind of home improvements? You'd be better off taking a look at the scope of work you want doing and then working out a budget to pay for this in cash over the foreseeable future.

Or better still, start a savings plan and do your home improvements when you have the readies.

If this is not an affordable option, then face it, maybe neither is the loan.

Just my opinion.

Before you borrow, take a look at the monthly repayments and multiply by the term of the loan to see exactly how much this is going to cost you.

If they've guaranteed you the 6.4%, then it's a reasonable loan rate (however there are 0% finance options if you're savvy enough though). Watch out for PPI if they try and offer it to you and take a look on their site about the early repayment penalties (I think it's one month's interest?).

Good luck.

Xbigman

mrcow wrote:

Well you've asked for opinions......

You say they've offered you a loan, which means that before this, you weren't considering it?

I was just going to say this too. Why do you think they offer you loans out of the blue, to get you thinking about what you can spend them on.
Regards



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