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Author Topic: Loans- Early Repayment  (Read 2651 times)
Chubbs

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« on: Friday, December 18, 2020, 13:58:25 »

I could probably call them and ask but wanted to check the wisdom the TEF before i did so.
I have around £7.5k left of a loan to pay off with Nationwide. Is there any like hood they will offer me a discount if i wanted to pay it off early?
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tans
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« Reply #1 on: Friday, December 18, 2020, 14:01:16 »

Doubt it
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Mister Lorenzo
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« Reply #2 on: Friday, December 18, 2020, 14:12:29 »

I could probably call them and ask but wanted to check the wisdom the TEF before i did so.
I have around £7.5k left of a loan to pay off with Nationwide. Is there any like hood they will offer me a discount if i wanted to pay it off early?

Yes you will get a discount as you won't be paying all of the interest that you would do if you let the loan run it's full term.
Call them and ask for a settlement figure.
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Berniman
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« Reply #3 on: Friday, December 18, 2020, 14:39:18 »

I could probably call them and ask but wanted to check the wisdom the TEF before i did so.
I have around £7.5k left of a loan to pay off with Nationwide. Is there any like hood they will offer me a discount if i wanted to pay it off early?

No.  In fact you need to make sure that there aren't any early payment penalties, but there usually aren't with loans.  As said, the discount is all of the interest you will have saved over the course of the loan
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« Reply #4 on: Friday, December 18, 2020, 14:55:49 »

Maybe.  Smiley
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Samdy Gray
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« Reply #5 on: Friday, December 18, 2020, 14:57:08 »

Depends on the loan agreement. Some apply the interest for the whole of the term right at the start, so there might not be any saving. Check the wording and ask for a settlement figure.
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mystical_goat

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« Reply #6 on: Tuesday, January 12, 2021, 17:50:02 »

No.  In fact you need to make sure that there aren't any early payment penalties, but there usually aren't with loans.  As said, the discount is all of the interest you will have saved over the course of the loan

This
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Formerly Drummer Boy

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« Reply #7 on: Tuesday, January 12, 2021, 23:47:00 »

It really depends on the terms and conditions of the loan. We're all frankly guessing to if there is a saving to be had or not based on previous experiences of different financial services but when I had a loan with Zopa, it was compound interest calculated applied month so each month, the interest calculated for the month got paid off first and the remaining payment deducted from the loan balance. The more I paid each month, the less interest was accrued each period.

If it's a fixed rate on a fixed term, then no but who knows. Give them a call like others have suggested Cheesy Good luck
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I used to be that kid with the drum in the Nationwide and Town End - Be nice to me or I'll tell my Mum Smiley
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