bitsilly
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| posted on 9/2/11 at 06:31 PM |
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Can anyone tell me if this loan is cheap?
I am soon (with luck) moving house.
I have been offered a loan of £35K towards the move. For this they ask for £125 pcm on interest only basis (ie I pay back the 35K whole later on).
There is no set up fee and it means that the interest money is kept in the family, but can anyone tell me if it is good value?
I will ring the bank tomorrow for a quote but if it is a close call, as I said, I'd rather pay family than a bank.
It is near impossible to work out how the offer equates to others available on the interweb!
As my headache developed I thought I'd pass it on!
Many thanks gents.
Ed
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dilley
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| posted on 9/2/11 at 06:38 PM |
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Take it!
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dilley
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| posted on 9/2/11 at 06:39 PM |
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It's 5%!
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blakep82
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| posted on 9/2/11 at 06:42 PM |
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yep, take it i think. an interest only mortgage (about 5% with halifax) is about £160 a month, so seems a good deal. yours seems about 4.2%? somewhere
around there?
as long as it doesn't cause family problems... money has a habit of causing trouble with family 
the conveyancing solicitor will want some kind of contract drawn up probably
[Edited on 9/2/11 by blakep82]
________________________
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snapper
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| posted on 9/2/11 at 06:48 PM |
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The problem is you will have to take out an endowment or save using ISA to get 35k to pay back endowments are s4it at the moment, I have been chasing
mine for years and have been paying capital back to cover shortfall
I eat to survive
I drink to forget
I breath to pi55 my ex wife off (and now my ex partner)
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bitsilly
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| posted on 9/2/11 at 07:03 PM |
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Cheers Gents!
The original amout will be paid off ASAP using my wifes bonus, no additional plan required.
The advice is much appreciated.
Regards
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TimC
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| posted on 9/2/11 at 08:23 PM |
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If it was the place we spoke about you could even recoup some of that by renting me some garage space! 
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stevebubs
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| posted on 9/2/11 at 08:39 PM |
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quote:
Originally posted by bitsilly
Cheers Gents!
The original amout will be paid off ASAP using my wifes bonus, no additional plan required.
The advice is much appreciated.
Regards
Can I have your wife? Mine only spends my bonuses...
[Edited on 9/2/11 by stevebubs]
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carpmart
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| posted on 9/2/11 at 10:01 PM |
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quote:
Originally posted by stevebubs
quote:
Originally posted by bitsilly
Cheers Gents!
The original amout will be paid off ASAP using my wifes bonus, no additional plan required.
The advice is much appreciated.
Regards
Can I have your wife? Mine only spends my bonuses...
[Edited on 9/2/11 by stevebubs]
+1 - has she got a well paid sister?
You only live once - make the most of it!
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'94 MX5 MK1, 1.8
F10 M5 - 600bhp Daily Hack
Range Rover Sport - Wife's Car
Mercedes A class - Son's Car
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JoelP
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| posted on 10/2/11 at 08:27 PM |
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seems fair all round to me, you get a loan much cheaper than unsecured finance (which is about 7 or 8% at the min), indeed you mortgage APR will be
around this rate depending on your deposit, plus the person lending you the money gets more interest than a savings account, and probably wont pay
income tax on the payments!
Beware! Bourettes is binfectious.
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owelly
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| posted on 10/2/11 at 09:15 PM |
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I borrowed £150k to buy my house and I'm paying back £336 a month in interest!
http://www.ppcmag.co.uk
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Puzzled
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| posted on 10/2/11 at 09:46 PM |
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Family
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Puzzled
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| posted on 10/2/11 at 09:48 PM |
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Dont ya just love them. I"m available for adoption.!!!.
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daviep
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| posted on 10/2/11 at 09:48 PM |
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For comparison purposes as blake said £125 per month on £35K works out as about 4.3%
For an unsecured loan this would be a great rate but compared to mortgage rates at the moment it's not bad but not brilliant either.
Davie
“A truly great library contains something in it to offend everyone.”
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