Loan Security..cash Deposits

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Hi

Just wondering for those of you who have used like a cash deposit as security on a Pro Study loan...for example for about £50,000 how much cash deposit have you put down to secure the loan?

any info would be helpful...thanks guys ;)

[TelBoy]

I think you will find that they will NOT accept a cash deposit unless it equals the loan ammount. Property with the required ammount of equity is what they usually want.

Don't let finance put you off a flying careear - just do whatever you can, and the very best to you.

[woskam]

From information I was given by OAA regarding the HSBC loan, if you choose to secure the loan by putting in a cash deposit you must deposit the full amount into an HSBC savings account which then gets frozen. As you pay off the loan you may withdraw an equal amount of the deposit...for example, if you pay off £1000 of the loan, you can then take £1000 of the deposit out of the savings account, hence the outstanding loan capital and the cash deposit are always equal.

[Re-Heat]

Why would you want to do that?

They make money from you on the difference in interest rates. Reduce the loan principal amount to prevent this...