Halifax & Bank of Ireland Motor Loans 6.9%

[Banking2006]

I note above and just a word of warning about the current Halifax product- that claims to offer a free sat nav! Beware, you'll be actually paying dearly if you try to pay off the loan early- they charge penalty interest x 90 days on top of your remaining balance. Refer to Sections 5.8 of the terms and conditions and also the Fees and charges section on their website

On the other side, the Bank of Ireland do not penalise customers (currently at least), if you decide to pay off early or pay off a bigger repayment.

 

[John Rambo]

Are you sure about this? BOI's website says there are penalties for early repayment...Tesco's 6.9% is the best in my opinion as it's also fixed but you can pay it off early (but it has to be in one go, not overpaying or bit by bit)

 

[ClubMan]

I note above and just a word of warning about the current Halifax product

...

Refer to Sections 5.8 of the terms and conditions and also the Fees and charges section on their website

The warning seems unnecessary given that it's clearly stated in their T&Cs as you say?

5.8 At any time during the term you may repay all or any part of your loan before the due date for payment. Where you repay your loan in part, you must pay us, in addition to the amount repaid, interest on the amount repaid which will be accrued up to the date of repayment.
Where you wish to repay your loan in full, you must do so in accordance with condition 10.3.


...

10.3 Where you or we end this agreement prior to the end of the term or where you choose to repay the loan prior to the expiry date, you must pay us the following amounts:-
(i) the outstanding principal balance;
(ii) all interest accrued but unpaid and all other costs or charges owing;
(iii) all interest and other amounts which would have been repayable up to the expiry date less a reduction in the total cost of credit pursuant to Section 52 or 53 or the Consumer Credit Act, 1995, so that you pay to us an amount equal to three monthly interest payments.

 

[Banking2006]

Yes I checked with banking 365 at BoI and they advised no penalty. Call is recorded as are all to such call centres.

 

[oldtimer]

Haven't you to borrow a minimum of €20,000 from Bank of Ireland to get 6.9%?

 

[Banking2006]

Not much of a car if you get a new motor for less than 20k! So meeting that criteria isn't a problem for the majority of motor loan applicants...