Loan question

mushtafa

mushtafa

mushtafa

Soldato
Joined
17 May 2013
Posts
2,943
Location
West Sussex, UK
Looking at a loan for a new car.

£6k 5yrs 7.9% Total repayable £7,236
£8k 5yrs 3.9% Total repayable £8,803.20

Anything stopping me taking the £8k, using the £6k and keeping the additional £2k to pay it back?

That'll save me £432.80
 
I only require an extra £6k after the sale of my car.

The lower interest rate isn't available at £6k.

This is from NatWest. It seems on average with the other banks. I'm sure lower interest would be available on a higher amount.

I used 5 years as an example because I felt the interest was low enough to enjoy the lower monthly payment rather than doing it 3 years
 
Thanks all. On another note, why the bank ask what the money is for? Do they judge your acceptance on it? The rates stay the same for whichever I select
 
I didn't realise that was possible to pay more than the monthly repayment.

How does that affect the load? Do you pay the original monthly payment, and finish the loan before the 5 years. Or do they adjust the monthly payment for the term?
 
So I tried Sainsbury's as they had the lowest advertised APR. They said no for whatever reason.

I signed up to a credit check to see what was going on and that showed my credit to be good. Was something like 7/10.

They gave Sainsbury's a 30% chance of acceptance, but NatWest (who I bank with anyway) 95%.
(Should have checked first I suppose).

I ran through the calculator and they gave an APR of 3.9 I think it was. Ran through the quote and it's now gone to 15.9%. NatWest said they can't change that, but it won't affect my credit if I wanted to look elsewhere.

Is this normal for the advertised APR to change?

If I check elsewhere, does it affect my credit score every time I get a quote?

It seems like I need to get a quote to know the true repayment
 
It's a minefield to me. Not sure what to do now. I either except it for what it is at 15% or risk affecting my credit score by looking elsewhere.

My credit was bad around 10 years ago, but it's been on the increase since sorting everything out over 5 years ago. No missed payments on my credit card, no defaults, no CCJ etc.
 
I've checked credit karma and there's been no new hard searches on my file so that's a good thing I suppose. Theres numerous soft searches, but it says that doesn't affect anything.

tom_e said:
I'd look for something £6k cheaper rather than pay nearly 16%.
Click to expand...

I agree. I don't want to pay that much to borrow it
 
I spoke to someone really helpful at NatWest this evening. He said the higher interest rate of 14.9% is due to not having a loan before and my credit report is relatively simple in regards to borrowing money.

He did explain being able to re-finance the loan in around 6-12 months which should be a lot lower APR. (Assuming I keep up with payments and my credit file doesn't go down).
 
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