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Thread: new loan advice

  1. #1

    new loan advice

    my son has 400 remaining on his current Natwest loan. He is looking to borrow 15,000 and can clear the 400 if it helps. Natwest have suggested consolidating the current balance over 5 years at a monthly cost of 387 with a total repayment of 23,000. This sounds rather high to me. Could you lovely people please advise us!

  2. #2
    By my calculations that is an APR of 20.4%

    That is really high for a loan. If he has poor or little credit history then maybe he should set his sights a little lower on whatever he was going to buy for 15,000

    If he can clear the 400 there is no point spreading it over a further 5 years and paying 5 years worth of interest on it.

  3. #3
    You're likely best clearing the 400 but be careful about any early repayment charges, as it might be best to just let it run out.

    That sounds fairly high, what APR are the offering? What's the 15k for?

  4. #4
    it's for a bigger house boat as the one he lives on is now too small. He has had some mobile phone contract problems as someone took advantage of him, but has had no issues with his current loan. Could it be that he hasn't been responsible for council tax for a couple of years, and isn't currently on the register of electors?

  5. #5
    It could be that he's asking for 15k and his risk profile means that that's the interest rate he'll get from Natwest.

    Has he asked any other providers/used the MSE Loan Tool?

    The above issues would affect the chances of getting credit (The electoral roll issue especially), not the terms of any credit, aside from any defaults arising from the "mobile phone issues".

    Tell your son to go to ClearScore, Noddle and the MSE Credit Club (All free) and check his credit files).

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