Could you please find me a list of the credit institutions within the
UK, which offer the lowest interest or overall cost when loaning £2000
pounds to an individual (just graduated from Uni) over 2 years (if
possible, no repayments until then). Could you also list what
securities the bank (or credit institution) would require for any
particular loan.

Thank you,

    Andy

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Request for Question Clarification by lotd-ga on 11 May 2004 13:25 PDT

Hi Andy,

A couple of quick questions:

1. Do you have any history of adverse credit i.e. arrears, County
Court Judgements, defaults or bankruptcy?

2. How old are you?

I assume you are not a homeowner.

Thanks,
lotd

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Clarification of Question by acrxx-ga on 11 May 2004 15:20 PDT

No history of adverse credit, I am 21 and i am not a homeowner. Hope this helps.

Hi Andy,

Thanks for answering the questions posed.
There are a huge number of credit institutions and banks offering
loans in the United Kingdom. There is also a huge disparity in the
interest charged ? normally defined as APR (Annual Percentage Rate) ?
across these institutions.

All the major UK broadsheet newspaper web sites money sections offer a
loans comparison service. The service used by all of the web sites is
the Money Supermarket loans comparison service ?
http://www.moneysupermarket.com . This service allows you to compare
over 400 personal loan offerings in the United Kingdom.

I entered the following details into the loans comparison form:

- Selected Single Application.
- 2 year repayment period.
- £2000 loan amount.
- A date of birth to indicate an age of 21.
- Selected not a homeowner.
- Selected no adverse credit.

Of the 400 personal loan offerings 61 were available using the details
entered. The lowest APR was 6.2% and the highest was 19.9%.

The 3 lowest offerings (in ascending APR order) were:

Cahoot flexible loan: 6.2% 
Amount per month: £88.67 
Total Credit Charge: 128
Total Repaid: £2128
--------------------------------
Virgin personal loan: 6.5%
Amount per month: £88.92 
Total Credit Charge: 134
Total Repaid: £2134
---------------------------------
Nationwide personal loan: 6.7%
Amount per month: £89.09 
Total Credit Charge: £138
Total Repaid: £2138
----------------------------------

The loans comparison form can either be accessed by clicking on the
?Loans? link on the left side navigation bar of the money supermarket
home page or via any of the newspaper web sites listed below.

Times Online ? Your Money - Borrowing
 http://business.timesonline.co.uk/section/0,,9555,00.html 

Guardian Unlimited Money ? Credit and Debt
http://money.guardian.co.uk/creditanddebt/

Telegraph Money
http://www.telegraph.co.uk/money/main.jhtml?menuId=244&menuItemId=2853&view=SUMMARY&grid=M4&targetRule=3&_DARGS=%2Fmoney%2FMenu%2FSideMenuItemsFrag.jhtml.1_A&_DAV=-1

Independent Money
http://money.independent.co.uk/personal_finance/loans_credit/


As you have stated you have no adverse credit and are a graduate of 21
years of age, therefore I can only presume you will be successful in
your loan application. As the loan amount is for only £2000 most
banks/credit institutions will not require any form of security.

=======================================================================

Search Terms Used:

Loans Comparison United Kingdom
://www.google.com/search?hl=en&lr=&q=Loans+Comparison+United+Kingdom&btnG=Search


Good luck in your loan application.

Kind regards,
lotd

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Request for Answer Clarification by acrxx-ga on 12 May 2004 10:48 PDT

The most favourable loan I would be after, would be one where you just
pay back the whole £2000 (with interest of course) in one payment
after two years have elapsed. I know for a fact that I will have this
money by then. Is something of this nature possible, if it is not too
much to ask?

Andy

---

Clarification of Answer by lotd-ga on 12 May 2004 11:06 PDT

Hi Andy,

Assuming you are relatively recent graduate there are institutions
offering loans with deferred payments. The following web site lists
all the institutions offering special graduate loans:

http://www.moneyfacts.co.uk/loans/charts/banking_grad_loan.htm

There are varying lengths offered for deferred payments dependent on
your current graduate situation and your type of degree. Assuming you
are not a postgraduate, medical, dental, legal or MBA graduate. The
most promising offer appears to be the Royal Bank of Scotland 6.3% APR
loan which can be deferred for up to 9 months.

It is more than possible you may be able to negotiate a longer
deferred payment period with the bank dependent on your credit history
and graduate degree.

I hope the above information answers your question. If you require any
further clarification please do not hesitate to ask.

Kind regards,
lotd

Very thorough. I am impressed.