Why You Must Not Get A Loan From Your Bank

In general, it is a fair maxim to live by that you must not get a loan from your bank. In 90% of cases this is probably true.

The reason is simple: your bank probably doesn't offer the most attractive loan for you, either in terms of total amount paid back or flexibility - repayment holidays, ability to overpay perhaps and so on and so forth.

Estimates say that for the average loan taken out you could probably get a 2% less interest rate per annum than you have settled for, over the course of the loan and even the first year, this is a significant amount.

So why do people stay with their bank? Two reasons - lack of knowledge there is something better out there, and secondly if they do know there is something else then the inertia to act due to the perception it is such a hassle to change these things.

However if you can save hundreds or perhaps even thousands of pounds by moving elsewhere don't you think it's worth a few hours work?

With all the money comparison websites this is also now easier than ever where you can literally compare all the rates and providers online before approaching the lender with the most attractive options for you.