interest only loans

[patgar]

hello..
i am getting an interest only loan from a finanance company. Conld any one tell me how they charge their interest. Also what is the normal interest rate that should be charged per month. any feedback would be greatly appreciated. thanks

 

[ClubMan]

i am getting an interest only loan from a finanance company.

Are you talking about a mortgage here?

Conld any one tell me how they charge their interest.

Your monthly repayment should be something lilke capital amount borrowed x rate (APR) / 12 months (less tax relief if applicable).

Also what is the normal interest rate that should be charged per month.

Depends on the lender. Mortgage loan rates can be anything from ECB rate + c. 1% upwards.

 

[ClubMan]

interest only loans
http://www.askaboutmoney.com/showthread.php?t=52923

 

[patgar]

sorry for posting my thread twice...i didnt think the first one went through

i have been offered an interest only loan for 2%/month. I realise it is a bit expencive...but is it too expencive?

 

[ClubMan]

What is the APR? 2% per month sounds like at least 24% APR!!!! Is this a mortgage or other secured loan or an unsecured loan?

 

[patgar]

this is a secured loan on property that i already have...I have a bad credit rating and i am going to borrow off a private finance company.At the moment the large high street banks wont give me any money..the rate i was quoated was 2% interest per month. To get back on track i need to raise this finance

 

[ClubMan]

Who is the lender? Ask them what the APR is. If it is c. 24% then it is a crazy rate. Is there no other way that you can get by other than borrowing at this sort of rate? By doing so you could not only not sort your finances out but end up with even worse problems...