# Halifax v Bank of Ireland 6.9% loans



## Banking2006 (25 Jan 2008)

Just got packs from both above, Loan interest over lifetime of loan is 20 euro dearer with Halifax. Should they not be the same?


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## Satanta (25 Jan 2008)

Something I'd never looked at or thought about before. On the surface, you would assume so.

Are the repayment spacings on both the same? 
Is the term the same on both? (down to the final day)

I'm guessing there's something very slight in the difference, but without being able to see the full details (or even have an idea of the term/size of the loan) it's tough to comment (if it's a long term / high value loan it might just be a rounding error).


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## Banking2006 (25 Jan 2008)

Term 5 years
Amount 22k
Rate 6.9% fixed


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## ClubMan (25 Jan 2008)

Are both rates 6.9% _APR_?


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## Banking2006 (26 Jan 2008)

Yes both rates are 6.9%, I have both approvals to prove it!


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## ClubMan (26 Jan 2008)

But are they both definitely 6.9% _*APR*_!


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## Banking2006 (26 Jan 2008)

Halifax
[broken link removed]

Bank of Ireland
[broken link removed]

Perhaps both banks have different calculators?


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## irishpancake (27 Jan 2008)

Wouldn't be anything to do with the Sat Nav incentive with Halifax?

Can't see why, but just a suggestion. 

Have you asked Halifax to explain the discrepancy?

Is it possible to get an APR calculator, which takes account of the variables?


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## Banking2006 (27 Jan 2008)

Yes could be something to do with their 'free' offer of sat nav valued at 200 euro- but only 129 on special offer at Halford's!


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## irishpancake (28 Jan 2008)

Banking2006 said:


> Yes could be something to do with their 'free' offer of sat nav valued at 200 euro- but only 129 on special offer at Halford's!



But you would be gettin the sat nav for 20 squid over 5 years 

seriously, i don't think this is it, as APR is supposed to take these things into account, is it not?


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## ClubMan (28 Jan 2008)

irishpancake said:


> APR is supposed to take these things into account, is it not?



That's what I thought alright...


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## Banking2006 (29 Jan 2008)

Thanks for replies- problem for me if the 3 months penalty interest if i pay off early- bank of ireland do not charge same. So all in all Halifax is to be avoided!


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## Banking2006 (31 Jan 2008)

Answer to different amounts- Halifax do 'posting' on their internal system every month for loans, while it appears Bank of Ireland do this quarterly.

Can this be acceptable answer?


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## John Rambo (31 Jan 2008)

Banking2006 said:


> Thanks for replies- problem for me if the 3 months penalty interest if i pay off early- bank of ireland do not charge same. So all in all Halifax is to be avoided!


 
Are you sure about this? Even in BOI's TV ads for this product there's a warning across the bottom of the screen about penalties for early repayment. I've always understood Tesco were the only ones at 6.9% who didn't penalise early repayment.


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## Banking2006 (1 Feb 2008)

Yes Bank of Ireland do have 'power' to charge penalty- but in reality they don't- even ring them and ask. However, they could if they wanted or if cost of money rose significantly in future. 

Halifax guarantee to charge penalty!


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## John Rambo (1 Feb 2008)

Banking2006 said:


> Yes Bank of Ireland do have 'power' to charge penalty- but in reality they don't- even ring them and ask. However, they could if they wanted or if cost of money rose significantly in future.
> 
> Halifax guarantee to charge penalty!


 
So if you get the loan I presume it'll be in the loan offer that there's no penalty for paying it off early? With Tesco you haver to pay it off in one go...can you overpay with the BOI product? Cheers


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## Banking2006 (1 Feb 2008)

Further to message, I'm sure you've noted other posters re. Tesco Loans- seems to be some problems. Reality is that Tesco Loans are really Ulster Bank's way of selling 'cheaper' product. 
http://www.tesco.ie/finance/personalloans/index.html

In the BOI pack, it states they can indeed charge a penalty. No calculation of how this would work is given. Therefore, you ring them (and as all calls are recorded), make a note of date/time/ rep. you speak with and ask them. Simple when you know how... I understand that copies of all your calls are available under Data Protection Acts- a simple fee of 6.35 euro gets that sent to you


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## Banking2006 (14 Mar 2008)

Answer to this riddle is that Halifax accrue interest on a monthly basis on such loans and BoI do it on a quarterly basis. Halifax state this in their 'small print'. Is this a valid enough excuse for charging more on the same APR loan?


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