Discussion
LeadFarmer said:
Might be needing to borrow about £5k soon to fund upgrading on my caravan to a newer model.
Best personal loan I can find is 3.3% for £5k. I'd be happy with a 2yr loan.
Are there any other options I should be considering, such as credit card etc, or is a bank loan the best product?
interest free credit card would be a good option yes. Best personal loan I can find is 3.3% for £5k. I'd be happy with a 2yr loan.
Are there any other options I should be considering, such as credit card etc, or is a bank loan the best product?
Petrolsmasher said:
interest free credit card would be a good option yes.
Aren't they normally just 6 months interest free? I'd be needing to spread the repayments over perhaps 2 years to make them affordable. I guess I could do it on a credit card and start paying it off, then switch to another card after 6 months, or then take out a personal loan for the remainder?The problem is, £5k seems to be the cut off point for interest rates dropping. Less than £5k and the interest is about 8%, but borrowing £5k brings it down to 3%. If I start the loan off on a credit card for 6 months then any bank loan after that would be less than £5k and cost me more.
Stella Tortoise said:
Will the caravan dealer accept a credit card for £5k?
This is worth checking, some CC's are doing pretty good cash transfer deals too nowadays. I got a Barclaycard e-mail (I think?) a few months ago offering me cash transfer for a one-off 2% fee which would still come in better than a bank loan, I think my limit was something like £10k of the maximum limit of 12 on my card, and it was 20+ months interest free.Stella Tortoise said:
Will the caravan dealer accept a credit card for £5k?
I may be buying the caravan privately, after i have sold my current caravan.Would a credit card allow me to pay into the sellers private bank account? Or maybe into their Paypal account?
A private seller may prefer cash which is why I assumed a personal loan would be easier?
Fonzey said:
some CC's are doing pretty good cash transfer deals too nowadays. I got a Barclaycard e-mail (I think?) a few months ago offering me cash transfer for a one-off 2% fee which would still come in better than a bank loan, I think my limit was something like £10k of the maximum limit of 12 on my card, and it was 20+ months interest free.
LeadFarmer said:
I may be buying the caravan privately, after i have sold my current caravan.
Would a credit card allow me to pay into the sellers private bank account? Or maybe into their Paypal account?
A private seller may prefer cash which is why I assumed a personal loan would be easier?
No. You would need a personal loan or a money transfer credit card, which would give you interest free but also charge a fee. Would a credit card allow me to pay into the sellers private bank account? Or maybe into their Paypal account?
A private seller may prefer cash which is why I assumed a personal loan would be easier?
garyhun said:
Stella Tortoise said:
craigjm said:
Yes
What is the impact?Will the lender keep the repayments the same and shorten the term or reduce the payments and keep the term the same?
One is far more efficient than the other.
Stella Tortoise said:
What I was getting at is what is the impact in terms of the overpayment?
Will the lender keep the repayments the same and shorten the term or reduce the payments and keep the term the same?
One is far more efficient than the other.
They will keep the payments the same and reduce the term Will the lender keep the repayments the same and shorten the term or reduce the payments and keep the term the same?
One is far more efficient than the other.
craigjm said:
They will keep the payments the same and reduce the term
I had the option of both when i paid some of my loan off with Tesco. Either lower the monthly payments or reduce the length. OP id be looking at the loan option personally.
I got a £11.5k loan at 3.2% over four years. Pay less than £800 interest. Also not linked to the car so can sell/swap easier than if it had finance on the car.
Thanks for all the answers. Things have progressed slightly since my original post...
We've decided to up the loan to £11k to get a newer caravan, and to install a new kitchen/lounge floor at home
However, in 12 months I have an endowment policy paying out about £4k which I'll pay towards the loan, so by then I will have paid back a year of instalments, plus the £4k.
Whilst I'm still considering a 3% bank loan over 4years, I'm also tempted to add the £11k to my mortgage at 0.9% over the remaining 12yr term, knowing I will be paying off a £4k chunk in a years time, reducing the extra monthly payment to about £40
We've decided to up the loan to £11k to get a newer caravan, and to install a new kitchen/lounge floor at home
However, in 12 months I have an endowment policy paying out about £4k which I'll pay towards the loan, so by then I will have paid back a year of instalments, plus the £4k.
Whilst I'm still considering a 3% bank loan over 4years, I'm also tempted to add the £11k to my mortgage at 0.9% over the remaining 12yr term, knowing I will be paying off a £4k chunk in a years time, reducing the extra monthly payment to about £40
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