Paragon Loan

Liz65
Liz65 Posts: 95 Forumite
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in Loans
Hi, can anyone advise me.

We have a secured loan with Paragon Finance and I have asked them if they could change the interest rate to a lower rate as the interest is too high compared to other loans. An I got told this was impossible because of the type of loan we have. So far we have only paid off the interest and just started actually paying of the loan.

thanks

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You haven't just paid off interest.

    Each payment will pay part capital and part interest. Interest is higher in the early stages as you owe more.

    If you cannot get an equivalent loan elsewhere, then overpay as much as you can.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Liz65 wrote: »
    Hi, can anyone advise me.

    We have a secured loan with Paragon Finance and I have asked them if they could change the interest rate to a lower rate as the interest is too high compared to other loans. An I got told this was impossible because of the type of loan we have. So far we have only paid off the interest and just started actually paying of the loan.

    thanks

    I do not see a question but what you say is correct - there is no need for Paragon to reduce the amount of interest that you have agreed to pay just because you say its higher than others.

    If you want to reduce the interest then you need to get another loan with a lower interest rate and pay off the Paragon loan.
  • Ian_875
    Ian_875 Posts: 105 Forumite
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    Am I understanding this correctly? You want them to give you a lower interest rate because you think it's too high?

    Surely you were happy with the rate when you signed up for it? In what world would they happily lower it?
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    The OP asked similar question last month.....answers have not changed.

    https://forums.moneysavingexpert.com/showthread.php?t=5865100
  • Brock_and_Roll
    Brock_and_Roll Posts: 1,207 Forumite
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    Crickey, we really must start teaching basic financial management in schools!
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Liz65 wrote: »
    Hi, can anyone advise me.

    We have a secured loan with Paragon Finance and I have asked them if they could change the interest rate to a lower rate as the interest is too high compared to other loans. An I got told this was impossible because of the type of loan we have. So far we have only paid off the interest and just started actually paying of the loan.

    thanks

    Liz

    So let me get this straight, you feel the interest rate is too high yet you agreed to the rate so why are you wanting it reduced it now, surely you should have got a loan with a cheaper rate of interest at the time ?

    Is this the same Paragon loan you asked about back in July ?

    Link
    https://forums.moneysavingexpert.com/showthread.php?t=5865100
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    The only way to get out of this is to remortgage the property.
  • amersall
    amersall Posts: 17,005 Forumite
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    When you received the PPI redress, did they reduce the loan balance by the PPI total and reduce the monthly payment by the PPI monthly amount?.
  • Clive_Woody
    Clive_Woody Posts: 5,852 Forumite
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    Liz65 wrote: »
    Hi, can anyone advise me.

    We have a secured loan with Paragon Finance and I have asked them if they could change the interest rate to a lower rate as the interest is too high compared to other loans. An I got told this was impossible because of the type of loan we have. So far we have only paid off the interest and just started actually paying of the loan.

    thanks
    Why did you not get one of these other loans with a lower interest rate?
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
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