salsa-king

whats the differeence on the APR on some of these on line loan companies.
some say Fixed rate of 5.9%
other say Typical APR 6.1%


been looking at Cahoot at 5.9% APR... but it has an early redention payment!

Northern Rock is 6.1% Typical APR.. but has no early payment cost.


whats the best?

i want a fixed monthy payment going out my bank for.. say 36 months.


anyone any ideas?


Phil

imlach

"Typical" usually means the rate depends on your credit rating as to what %-age you get.

ie, best risk get 5.9%, worst risk may get offered 11% or something....

salsa-king

so if Typical is 6.1%.. doe sthat mean they have offered some ppl less than 6.1%... as the average has been worked out at 6.1% for the Typical rate?

yoza

What does it matter, so long as they say YES.

imlach

No, 6.1% is the lowest rate. Read the small print at the bottom of the webpage/advert, and it'll probably explain the "typical" word

salsa-king

Northern Rock a good option then

pay if off early if you want with no extra cost!

rik1471

They usually only offer the lower % if you take out over 5k.

Goochie

Try HFC bank.

Very competative and matched the lowest online rate I was offered. No early repayment penalties and you can easily make over payments too.

salsa-king

HFC bank.. hmm might just try them

GaryCat

Cahoot flexible loan is good. You can take out and pay in whatever you want, it's just like an overdraft with a low interest rate.

H7

Remember to read the small print

You'll probably find that the "no redemption penalty" ones just take your money up front, i.e. ALL your premiums go firstly to pay off the payment protection (if you've taken it out), THEN they go to pay off the amount for credit (i.e. ALL the interest forecast for the entire period of the loan), THEN finally to pay off the capital borrowed. In the worst cases, you'll be paying for over a year before you pay off any capital

This week, I compared a £19k loan from Northern Rock (6% fixed) with Abbey National (8.4% fixed) over 4 years. The difference? Less than £15 a month. Hardly worth shopping around for

logiclee

That's £720!! are you mad?

Pay for some tasty mods or a years servicing and insurance.

Lee

logiclee

ooops, double post

[Edited by logiclee - 1/21/2004 9:11:44 PM]