Paying off our HP 'balloon'

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1

 

User avatar
michelleb
Posts: 8
by michelleb » Thu Jan 28, 2010 1:22 pm
Hi all,

Hope this is in the right section.

After 4 years of HP payments on our car, they are about to end (March I think) and a balloon payment of approx £4,000 will be due.

VW finance have offered to re-finance the balloon but at an APR of 17%!!

My mother in law has offered to loan us the money needed to pay off the balloon so the car is ours straight away, at an interest rate of 4% annually.
Would we be allowed to do this, as long as the monthly payments we make to her are not higher than what we have been paying up to now??
Thanks

 

User avatar
Michael Peoples
Industry Expert
Posts: 15188
Contact
by Michael Peoples » Thu Jan 28, 2010 1:32 pm
This seems perfectly fine but you will need the permission from your IP. There is nothing to stop you obtaining credit with permission and the fact that the proposed loan is cheaper than you can obtain from VW I see no real issues.

 

User avatar
michelleb
Posts: 8
by michelleb » Thu Jan 28, 2010 1:56 pm
Thanks Micheal, I have sent an email to my IP to ask
permission. Fingers crossed!

 

User avatar
Adam Davies
Posts: 14596
by Adam Davies » Thu Jan 28, 2010 3:45 pm
Hi
Good to at least see VW offering finance even though the person is in an IVA, even at a fairly high rate
Regards

 

User avatar
michelleb
Posts: 8
by michelleb » Thu Jan 28, 2010 5:08 pm
Yes Andy, we were quite pleasantly surprised. They didn't even ask to see any paperwork relating to the IVA.
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 22 guests