View Full Version : Bank loans - how high interest rates?

30th Aug 2007, 09:47
Okay mates,

I would have an question to people who has take loan for funding the training. How high interest rates banks offered to you? I have found a place to do it, but cannot afford it totally by my own. They offer loans via their partner banks, but no clue about how high interest rates.
How high rates i can expect?

30th Aug 2007, 16:09
The UK base rate at the moment means that you will do well to get away with anything under 7%. I'd budget for 10-15%, realistically.


30th Aug 2007, 16:27
For unsecured loans it will be more expensive than a mortgage or a loan secured against property.

£25,000 over 7 years `'6.8%`' £372.61 per month = £31,299.24 what you'll pay back. This is from the Royal Bank of Scotland.
I dare say this is a "loss leader" rate as when we went in to borrow some money to buy a car, the rate we were first quoted myseriously became a "bit more expensive" after we agreed to the loan.

Perhaps our combined income of £160,000 isn't enough to warrant the "cheap" money.....

Mortgages are currently running at ~8%.

So budget at least 2% above the mortgage rate to get what you'll be paying.

30th Aug 2007, 16:28
...and don't forget a contingency in case of an interest rate rise within the repayment period.

30th Aug 2007, 18:00
Oh man, even a bit higher that i expected. Cant you get euribor interest? But yea, certainly going up that too.

Sucks so bad:ugh:

Maybe some smaller banks are more willing to give low interest loans, but gotta go asking a guess.

30th Aug 2007, 18:11
See the bakns are muppets thread as well-that might give you a few clues.

30th Aug 2007, 18:51
Cant you get euribor interest
Nope, that is the inter-bank rate - for billions of dollars/sterling-worth of bulk borrowings.

30th Aug 2007, 18:57
Even the bank that does the loans for FTE offers Euribor+1.75%, and thats after you have been tested and declared a 'low risk of failing the course'.

30th Aug 2007, 19:23
I wouldn't rely on euribor, getting higher and higher all the time, and today almost 5%. + 1,75% it comes 6,5-7%. And you never know with long time loans, maybe in 5 years its already 7-10%.

Fixed interest rates 3,5-5% could be good deal, but probably you wont get such a deal.

Im searching banks in Finland and Germany, if somebody has any hints - please share it!

Hour Builder
30th Aug 2007, 19:29

I'm pretty clueless when it comes to interest rates and whats good/not good.

I'm looking at getting a £7k loan for and IR conversion, and funding the CPL from my wages.

Any idea on what I may expect to pay back of 3-5 years on this?

Sorry for pinching the thread


Hour Builder
30th Aug 2007, 20:48
You legend, holy cow...that seems very good.

I've got to nail my exams next week, then I'll be looking into it. The 3 year option is good, only paying £850 extra for 3 years, or even only paying extra £1400 on the 5 year option. By then I'll be earning some decent bucks..and I won't care. Speculate to accumulate :)

Thanks mate, is there any reference at all?


30th Aug 2007, 21:25
Hour Builder,

I've just got a flyer through the door from Alliance & Leicester today, and according to their blurb, you can have £7K for £140 pcm based on a five year repayt, or £218 pcm based on 3 years. The APR 7.9% - and that doesn't appear to be too bad?

If you got a flyer that will be a pre-approved loan and the interest rate could well be a bit cheaper than if you just rolled up at the bank and asked for it.


clear prop!!!
30th Aug 2007, 21:49
If you are only looking for £7k…only!!!:eek:, and it’s for an IR/CPL you should look at a career development loan.
On the face of it, it’s at around 6.8% fixed and… soft money, as it’s underwritten by Mr Brown and, you won’t lose your shirt if life goes tits up.
I say ‘on the face of it’ ‘cos there is a repayment break whilst you study and the interest pay back and capital repayments kick in when ‘you get employment’. You then start paying back.. plus the interest accrued over the repayment break..and the interest on that. A degree in maths would help work out the true interest!!
Have a look at: ww.lifelonglearning.dfee.gov.uk/cdl/
Good luck

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