Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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How does this sound?
Borrow £3500, payable over a year at £329pm.
£450 interest on the loan.
I want to pay £500pm so the interest drops if I end it sooner.
I'm crap with knowledge of finances and loans and stuff so I really don't have a clue about what's good and what's not?
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BigSte
Member
Registered: 27th Aug 02
Location: Sheffield
User status: Offline
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£450 interest on a £3.5k loan works out at 12.85% apr.......seems really high to me.
Never looked for a loan but thought people like Cahoot did them for like 8%??
Someone with more knowledge on the subject may be able to help more!
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Oh right, I've no idea what the 12.85% apr even stands for 
Is this where credit comes into it?
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richardworrall
Premium Member
Registered: 20th Sep 05
Location: Derby
User status: Offline
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have a look at cahoot.com, i used to be with them and allowed you to choose your monthly payment.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Went on Cahoot and apparently they are part of Abbey now so it directed me to the Abbey site.
Got a better deal (I presume lower percentage is good)
Says APR is 7.9%.
£335 interest.
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Pete_vxl
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Registered: 24th Nov 06
Location: Lochgelly, Fife
User status: Offline
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i work for halifax and the loan rates are sky high cause the credit crunch at the mo. this is not the time to be borrowing but 12% is nowt, i sold a guy £1500 for 29.9%!!!
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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She's ringing me back tomorrow to see if I want it. I'm still getting insurance quotes of £2k so got the day to try and get them down before agreeing to the loan.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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The lower the APR the less you pay in interest basically.
Nationwide are quite good because it's fixed for every customer (providing you have a good credit rating) and it isn't variable, therefore you pay out the same every month.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Ah right. So a fixed APR is the one to look out for, as a variable means the monthly payments could change?
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
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You wont get a great apr over that length of time for that amount of money.
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Pete_vxl
Member
Registered: 24th Nov 06
Location: Lochgelly, Fife
User status: Offline
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fixed rate is the same amount each month over the life term of the loan. when a compnay tells you typical variable that is there average so your loan may vary. your best fixed rate especially when the rates are goin up and up
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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I went into Abbey today but they don't have any advisors in till Wednesday 
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Fixed rates are obviously also better, because you can budget every month and not have to worry how much is going to come out of your account every month 
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AndyKent
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Registered: 3rd Sep 05
User status: Offline
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Fixed rate isn't always better - for example rates may reduce soon to encourage spending and bring the markets back to life.
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Oh I got this a couple days ago, money clears Monday 
It's fixed rate of £350pm with PPI, but I'll be putting more than that in by standing order to get it done with.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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quote:
Originally posted by aPk
Fixed rate isn't always better - for example rates may reduce soon to encourage spending and bring the markets back to life.
I know, but in the current climate, I doubt it. Fixed rate mortgages for 25 years are dodgey. Although I do like the idea of them.
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