TSB loan

Mell60_2
Mell60_2 Posts: 12 Forumite
in Loans
Hi,

Ive applied for a TSB loan for 2.9 but got offered 3.9% is this a good rate? This is the first loan I have applied for. No debit, mortgage nearly paid off. The loan is for £14k over 60 months. I will be able to pay it off after 36 months as I will have my pension lump sum. I noticed that I will have to pay 58 days interest if I pay it off, will this be on the full outstanding balance? I would like to pay as :)little interest as possible. Any advice would be greatly appreciated, thank you..

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    It's a good rate if that's the best rate you can get, and not a terrible rate if it's not.

    Yes, the 58 days interest will be on the remaining balance.
  • Mell60_2
    Mell60_2 Posts: 12 Forumite
    Thank you for response. I haven't tried anywhere else. I've read up on 51% of getting the premium rate and the 49% not, I thought they would all be around the same or more.

    I've seen on here some much higher rates so I guess it's a good deal.

    Does anyone know if I made a couple of over payments after 36 kill months and left a balance of £1 I would only pay 58 days interested on this? I've been looking at other threads and it seams possible but I'm not sure if TSB would allow it?
  • Mell60_2
    Mell60_2 Posts: 12 Forumite
    Thank you for you response. Do you know if I made a couple of large overpayments after 36 months and just left £1 balance TSB would just charge me 58 days on that, or does that make no difference?

    I have read a couple of other threads were this seems possible but that was a while ago and it seemed a bit of hit and miss with where you got you loan from
  • nic_c
    nic_c Posts: 2,928 Forumite
    Name Dropper First Post First Anniversary
    Have you checked if they allow over payments. You can ask for full settlement figure and partial settlement figure should you wish to, but I don't think paying all but £1 will avoid the interest penalty. You could also then compare that to keeping the loan going and drip feeding it from a savings a/c e.g. some accounts offer up to 5%.
  • Mell60_2
    Mell60_2 Posts: 12 Forumite
    Thank you for your response. Yes you can make over payments.

    I had note thought of keeping the loan going and drip feeding :money:
  • zippygeorgeandben
    zippygeorgeandben Posts: 1,273 Forumite
    Name Dropper First Anniversary First Post Debt-free and Proud!
    That sounds like a reasonable APR to me.
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • StopIt
    StopIt Posts: 1,470 Forumite
    To be honest, 10 years ago you'd have bitten the lenders hand off.


    Take it, overpay as planned and the interest you'll actually end up paying will be minimal.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • Jaglad111
    Jaglad111 Posts: 146 Forumite
    That rate is lower than my mortgage rate, I'd take it and be very happy. Also note that the impending interest rate rise means the 2.9% will soon be in the 3's anyway.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Jaglad111 wrote: »
    That rate is lower than my mortgage rate, I'd take it and be very happy. Also note that the impending interest rate rise means the 2.9% will soon be in the 3's anyway.

    Impending? Or years off?

    http://www.bbc.co.uk/news/business-41141453
  • StopIt
    StopIt Posts: 1,470 Forumite
    PeacefulWaters wrote: »
    Impending? Or years off?

    http://www.bbc.co.uk/news/business-41141453


    Or "Relatively near term"? Straight from the horses' (The BoE Governor himself) mouth.


    http://www.bbc.co.uk/news/business-41439349


    The fact is, they'll go up at some point. There's reports of multiple mortgage lenders upping their rates already. It'll only be a 0.25% rise, but even then, if you can get decent rates now, it's a risk to wait.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
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