Hi
Im about to buy a second hand car and getting a loan (approx 10,000) to finance the bulk of this.
The bank has offered over 5years
variable rate = 8.3% APR and 4.1% interest (201.64 monthly).
fixed rate = 8.8% APR and 4.4% interest (204 monthly).
At some point in Aug of this year, I may wish to reduce my loan by paying a lump sum figure. My question is which type of loan is best to go for and will ECB rates factor into the decision ?
Are people staying away from variable loans ? and is there any significance in the fact that the variable and the fixed rate payments are much the same over the 5yrs ?
Any advice welcome, thanks
Im about to buy a second hand car and getting a loan (approx 10,000) to finance the bulk of this.
The bank has offered over 5years
variable rate = 8.3% APR and 4.1% interest (201.64 monthly).
fixed rate = 8.8% APR and 4.4% interest (204 monthly).
At some point in Aug of this year, I may wish to reduce my loan by paying a lump sum figure. My question is which type of loan is best to go for and will ECB rates factor into the decision ?
Are people staying away from variable loans ? and is there any significance in the fact that the variable and the fixed rate payments are much the same over the 5yrs ?
Any advice welcome, thanks