Loans Section

Want To Repay Less? Get a Larger Loan

March 2005

It has been argued that in the Personal Finance world if you want to get the best deals you've got to do your research. And one of the worst things you can do is fall for the subtle marketing of the finance firms.

Case in point is personal loans. Standard business practice normally means that the more of a product you order the cheaper the price, and it's no differed with personal loans. This is why it's so important to do some homework. Recent research into the loan business has shown that in some cases loans worth just £50 more could cost around £600 less to repay.

Alliance & Leicester Example

• A £5,000 loan over 4 years from Alliance & Leicester would cost £629.28 less to pay back than a £4,950 loan also over 4 years!
• The total repayments on the £5,000 loan would be £5,612.64 compared with £6,241.92 on the £4,950 loan
• The reason is simple, the £5,000 loan is at 5.9% interest while the £4,950 is charged at a shocking 12.5%
• For more details go to the Alliance & Leicester website - Click Here

Direct Line Example

• A £5,000 loan taken out with Direct Line over 4 years versus a £4,000 loan pays £13.92 less over the 48 month period
• Not as startling as the above example but remember that you'll also receive £600 more so the total bonus is £613.92
• Of course, you could always use the extra £600 that you don't need to make monthly payments so giving yourself a so called repayment holiday
• For more details go to the Direct Line website - Click Here

Do Your Own Research

Obviously the Loan business is fast paced and new deals are being offered all the time so do your own research beforehand. Good loan companies that offer tiered borrowing rates include;

• Cahoot
• The AA
• Lombard Direct
• Northern Rock
• Abbey National
• Find's list of Loan Offers