Early Loan Repayment question
I have a loan with Barclays Finance, car purchase.
The loan has 17 months to run, and i wish to make a full repayment of balance. The repayment figure quoted is just about equal to to 17 times monthly payment, so as far as I can see no benefit from early repayment. Also looking at loan documentation, interest seems to be fully front loaded.
I was under the impression that interest could not be charged ( early repayment charge excluded), on period of early repayment.
Help appreciated
The loan has 17 months to run, and i wish to make a full repayment of balance. The repayment figure quoted is just about equal to to 17 times monthly payment, so as far as I can see no benefit from early repayment. Also looking at loan documentation, interest seems to be fully front loaded.
I was under the impression that interest could not be charged ( early repayment charge excluded), on period of early repayment.
Help appreciated
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Comments
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I have a loan with Barclays Finance, car purchase.
The loan has 17 months to run, and i wish to make a full repayment of balance. The repayment figure quoted is just about equal to to 17 times monthly payment, so as far as I can see no benefit from early repayment. Also looking at loan documentation, interest seems to be fully front loaded.
I was under the impression that interest could not be charged ( early repayment charge excluded), on period of early repayment.
Help appreciated
is it a written quote?0 -
When you say "just about" equal, what's the difference? What are your monthly payments? How much was the agreement for and how much did you borrow?is it a written quote?
They are allowed to charge you two months' interest on the outstanding amount for settling early.
Front loading doesn't happen, it's not allowed."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
Monthly repayment £117, difference between 17 times monthly and settlement figure plus £30.
My first statement issued Jan 2013 shows a capital sum of loan amount plus interest, so at end of first year only small capital repayment made.0 -
how much did you borrow
what APR
over how many months
what is the settlement figure
how many payment have you made before the settlement figure was made0 -
Loan over 4 years. Made 32 monthly payments. Debt at the end of first year was greater than amount borrowed.
Just discussed with Barclays. They say that a settlement charge of £300 is applied to loan. pushing up settlement cost. This amount they make clear is part of the loan agreement.0 -
Don't pay any attention to 'settlement figures' on yearly statements, they take into account the total repayments to be made. This is why it looks like loans are front-loaded, but they're not, but I can see why people think they are. Phone them up and get a proper settlement figure. Chances are it will be fees and two months' interest.
EDIT: Just saw your last post there, that explains it."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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