# Save to borrow schemes



## RonanZo (17 Jan 2012)

Hi,

I have my wedding coming up next February.
My partner and I are both working towards lump sums, but I don't think that we will have enough in time for the wedding.

I started to look at BOI's save to borrow scheme.
If I save E150 for 12 months. My savings are E1800. I can then borrow 5 times this, which is E9000. 

This sounds grand. However, I do not know what position I will be in financially this time next year.
Maybe I receive a lot of money as gifts and I want to pay off my loan in full, 2 weeks after I take it out.

My questions are:


What is the best save to buy scheme around, BOI, credit union etc.
Are there heavy penalties for paying off these loans very quickly. Is there a scheme which avoids all the interest repayments 'up front'.
I would much appreciate any advice.


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## Slim (17 Jan 2012)

Hi. The credit union does not penalise for early redemption or load the interest up front. You may only be allowed to borrow 3 times your savings.


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## ClubMan (17 Jan 2012)

At the risk of being a killjoy ... do you really need/can you really afford a €9K (or whatever) wedding? You can't really plan on reducing/paying off any debt based on cash gifts that may not materialise.


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## RonanZo (18 Jan 2012)

Ya clubman. I agree with you. 
However, I have to prepare for the worst.
The plan is to save, and borrow if neccessary.
If Slims facts are correct above, then I'll go with the credit union.

Thanks.


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## ClubMan (18 Jan 2012)

_CU _are not necessarily the most competitive place to borrow from - their loan rates are misleading and the effective cost of borrowing is inflated further by the need to have c. 25% of the loan on deposit/in shares at marginal if any return. Many other lenders will not penalise you for early part or full redemption of a variable rate loan.


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