House Biatch Posted July 1, 2015 Share Posted July 1, 2015 When we arrive in October, we plan to hire a car for a couple of weeks giving us a chance to get sorted with everything. We then planned to buy 1 car to start with part cash/ part loan, but I've just seen how much interest is being charged for car loans, even getting a secured loan with ANZ is from 8% and std personal loans are from 15%!! My eye's are bleeding... :arghh: I just had an offer today for a personal loan from the Nationwide at 3.2% apr and am thinking about loaning the money here and sending it out to Oz - does that sound doable or is there something big and obvious that I'm missing?? Quote Link to comment Share on other sites More sharing options...
nicolac34 Posted July 2, 2015 Share Posted July 2, 2015 Yes loan rates here are quite high for personal items, unsecured the most - wouldn't be getting one of those anytime soon that's for sure! The issue with getting a loan in the UK right now is that you are going to be at the mercy of currency fluctations to be able to repay it. As it is the dollar isn't doing so good against the pound - if that continues and you're having to send funds regularly back to the UK that good interest rate is going to seem like an ever increasing burden. For example if we had paid off my husbands student loan when we first arrived and the rate was 1.45 we'd be repaying around $3k less than we have to now it's $2.05.... Quote Link to comment Share on other sites More sharing options...
Bungo Posted July 2, 2015 Share Posted July 2, 2015 When we arrive in October, we plan to hire a car for a couple of weeks giving us a chance to get sorted with everything. We then planned to buy 1 car to start with part cash/ part loan, but I've just seen how much interest is being charged for car loans, even getting a secured loan with ANZ is from 8% and std personal loans are from 15%!! My eye's are bleeding... :arghh: I just had an offer today for a personal loan from the Nationwide at 3.2% apr and am thinking about loaning the money here and sending it out to Oz - does that sound doable or is there something big and obvious that I'm missing?? Interest rates are typically higher in Australia. It is just the way it is, just like it is hotter there and petrol is cheaper. I believe it is quite normal to get a car loan secured on the car, less common in the UK. I think it a bad idea to borrow money in the UK to pay off in Australia, because of the exchange rate issue mentioned, also because a reputable financial institute would not lend to you if they knew you were about to leave the country, therefore you would have to conceal your purpose and that would be fraud. Quote Link to comment Share on other sites More sharing options...
mungbean Posted July 2, 2015 Share Posted July 2, 2015 I just had an offer today for a personal loan from the Nationwide at 3.2% apr and am thinking about loaning the money here and sending it out to Oz - does that sound doable or is there something big and obvious that I'm missing?? Won't they expect you to be resident in the UK and to provide evidence that you will be working there to pay it off? If I were a bank I wouldn't be lending money to someone who's about to leave the country. Quote Link to comment Share on other sites More sharing options...
Que Sera Sera Posted July 2, 2015 Share Posted July 2, 2015 By a cheaper car with cash keep it 6-12 months then you'll be in a better position to get the best rates and save a better deposit. Quote Link to comment Share on other sites More sharing options...
boganbear Posted July 2, 2015 Share Posted July 2, 2015 Congratulations! You have discovered that you are being ripped off at every opportunity. By any business. Get used to it. Quote Link to comment Share on other sites More sharing options...
Guest Dave53 Posted July 2, 2015 Share Posted July 2, 2015 Congratulations! You have discovered that you are being ripped off at every opportunity. By any business. Get used to it. Beat me to it ... Dave C Quote Link to comment Share on other sites More sharing options...
Peach Posted July 2, 2015 Share Posted July 2, 2015 Congratulations! You have discovered how Australian banks remained solvent during the financial crisis and where the UK experienced a period of deflation (effectively negative interest rates) Australia continued to prosper. Australian banks didn't bankrupt themselves by throwing cheap credit at people who couldn't afford it -- what a rip off!! Quote Link to comment Share on other sites More sharing options...
House Biatch Posted July 2, 2015 Author Share Posted July 2, 2015 (edited) Yes loan rates here are quite high for personal items, unsecured the most - wouldn't be getting one of those anytime soon that's for sure! The issue with getting a loan in the UK right now is that you are going to be at the mercy of currency fluctations to be able to repay it. As it is the dollar isn't doing so good against the pound - if that continues and you're having to send funds regularly back to the UK that good interest rate is going to seem like an ever increasing burden. For example if we had paid off my husbands student loan when we first arrived and the rate was 1.45 we'd be repaying around $3k less than we have to now it's $2.05.... Good point - I hadn't really considered that. Edited July 2, 2015 by House Biatch Quote Link to comment Share on other sites More sharing options...
House Biatch Posted July 2, 2015 Author Share Posted July 2, 2015 As I said - it was just a thought, and I wanted to know what the angles were which I think are well covered above. Guess, I'll just have to suck it and line the Oz banks shareholders pockets... Quote Link to comment Share on other sites More sharing options...
Peach Posted July 2, 2015 Share Posted July 2, 2015 As I said - it was just a thought, and I wanted to know what the angles were which I think are well covered above. Guess, I'll just have to suck it and line the Oz banks shareholders pockets... I'm no great fan of the banks in either country, but this post shows what short memories people have. The UK government nationalised Lloyds and Royal Bank of Scotland and injected the equivalent of 30,000 GBP per household into the UK banking system to prevent it from collapsing. Within 12 months the banking sector was back to paying hefty bonuses, imagine if the government had given that money back to the taxpayers instead of the banks? What difference would a 30K bonus have meant to you? Once you start working in Australia you will be a shareholder, as every superfund invests into the Australian banks as they're a stable return. It will be in your interests that they remain profitable. Quote Link to comment Share on other sites More sharing options...
rommelverain Posted July 28, 2015 Share Posted July 28, 2015 that interest rate is too damn high! that's how austrailian banks roll. Quote Link to comment Share on other sites More sharing options...
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