Tesco fixed loan now only 7.5% APR

Hi guys,

Just to let people know Tesco are now offering 7.5% apr fixed loans. Thats a great deal and as far as i am aware beats all other products (Not sure about EBS but then again the criteria for qualifying for their lowest rate is complicated to work out)

Also tesco allow you pay off the balance of the loan at any given time without incurring any penalty.

Hi

All outlined in the Best Buys forum.

The Tesco offer was meant to last until February 28, but they have extended it to March 31. I'm pretty sure that the rate will increase at that stage.

Just for the record if you borrow off Tesco to consolidate your loans, they will only give it over 4 years.

Not so great if your circumstances change allowing you to pay it off earlier but you face the fixed rate term breakage penalties?

ClubMan said:

Not so great if your circumstances change allowing you to pay it off earlier but you face the fixed rate term breakage penalties?

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See the first post in the thread. Tesco don't charge breakage fees.

Mea culpa!

I would advise people to be very cautious when in the process of taking out loans. Its great to discuss certain angles here in this forum, but never forgetting that it's not professional opinions you are viewing. Just opinions. So its vital that you receive proper advice from a capable professional before making any decisions!

I agree what people should always seek independent, professional advice before entering into a contract on any financial product purchase but I'm curious as to what you consider inaccurate or inappropriate comment above (barring my now corrected mistaken comment) or elsewhere on the site?

bobboy said:

I would advise people to be very cautious when in the process of taking out loans. Its great to discuss certain angles here in this forum, but never forgetting that it's not professional opinions you are viewing. Just opinions. So its vital that you receive proper advice from a capable professional before making any decisions!

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I'd like to hear a bit more from you on this. By 'capable professional advice', who are you referring to and what is the likely cost?

E.g. if I want to borrow €5,000 over 3 years, is it worth my while paying someone for independent professional advice on this?

Also, the rate on the Tesco loan and the fact that there are no breakage costs are facts not opinions. This thread is not the 'should I take out a loan or not' type, it is discussing the rates and terms and conditions attached to the Tesco loan. So I think that your post is a little out of context.

I didnt state that anything on this website was inaccurate, etc. I merely pointed out that it's important to seek professional advice, especially when purchasing financial products. And yes, one must be careful that the person giving the advice does not have a vested interest in recommending a certain product,etc.

But why bring it up in this thread? Advising that people seek independent professional advice in relation to personal or car loans (such as those offered by Tesco) is arguably a bad idea. Why? Because the amounts invloved are not that significant and getting costly professional advice only adds to the cost of borrowing.

By all means recommend that people seek independent and professional advice when undertaking significant financial decisions (e.g. investing €100k where they have little else in the way of assets, or remortgaging to invest in shares), but as I have said I feel that such a comment is out of context in this particular thread.

I do not understand why you fel the need to repeat your points. I do not feel the compulsion to do so. I think that any viewer with any degree of intelligence can understand and appreciate my post in it's entirety. I do not wish to get involved in such a petty debate.

I feel the need to repeat it because anyone reading this thread might assume that you were advising that professional advice should be sought before taking out a Tesco loan (the topic being discussed in this thread). If that is what you are saying then in my opinion you are incorrect, and if that is not what you are saying, then your comments are out of context in this thread.

As to the 'petty' comment, if it is so petty, then why bring professional advice into the thread in the first place?

Anyway, the topic remains the 7.5% loan on offer from Tesco. My own view is that this is a good deal as it is a competitive (fixed) rate that carries no breakage costs for early repayment. Unless someone is seeking to borrow a significant amount of money (likely that they would not be accepted anyway), it should not be necessary to spend significant amount of money on professional advice.

As always, shop around for the best rate, and be aware of any and all terrms and conditions that apply. If you can find a lower rate than Tesco, good, but the advantage of the Tesco fixed rate loans over other fixed rate loans is that there are no breakage costs (which can be significant) in the event that the borrower wants to repay the loan early.

And just in case anyone is wondering, I have no connection with Tesco. I don't even like shopping in Clare Hall!