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  • FIRST POST
    • Mrstu82
    • By Mrstu82 16th Sep 17, 9:06 AM
    • 1Posts
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    Mrstu82
    Loan overpayments
    • #1
    • 16th Sep 17, 9:06 AM
    Loan overpayments 16th Sep 17 at 9:06 AM
    Morning all,

    First post here, always been a fan and quiet observer though! I'm after some help. I have a loan with Sainsbury. Loan was for £16000 over 60 months @ 14.9%. I have 32 payments left to make and my monthly payment is £385. As of this month I have doubled my payments. I have informed the lender and they are fine with this, no penalties. However the question they could not answer was this; If I continue to make double the payments, how many months will I have left to pay? I assume it isn't 16 months (or is it...?) I start getting fuzzy when trying to sort out the month reduction on interest etc. I can find overpayment calculators, the guardians one for example, but most look to be projections of overpayment's from the start opposed to starting over payments mid term. Any help would be appreciated, if I've missed anything vital please ask and I'll try to supply it!
Page 1
    • TrickyDicky101
    • By TrickyDicky101 16th Sep 17, 12:47 PM
    • 2,799 Posts
    • 1,813 Thanks
    TrickyDicky101
    • #2
    • 16th Sep 17, 12:47 PM
    • #2
    • 16th Sep 17, 12:47 PM
    Assuming you made 28 payments at the original £385pm then you would have had c.£10,000 outstanding when you went on to double payments (£770pm).

    It would then take just over 14 months to fully repay the outstanding loan balance.
    • Sarastro
    • By Sarastro 25th Sep 17, 7:15 PM
    • 255 Posts
    • 173 Thanks
    Sarastro
    • #3
    • 25th Sep 17, 7:15 PM
    • #3
    • 25th Sep 17, 7:15 PM
    https://www.vertex42.com/ExcelTemplates/loan-amortization-schedule.html

    This lets you see the effect exactly of over-payments and how much lovely interest you've saved. It does assume the monthly payment stays the same, and you shorten the term of the loan, rather than reducing the monthly payment and keeping the term the same. Just enter the starting figures with what the balance of the loan is today and the amount of time left.
    Last edited by Sarastro; 25-09-2017 at 7:16 PM. Reason: additional info.
    • Sarastro
    • By Sarastro 25th Sep 17, 7:18 PM
    • 255 Posts
    • 173 Thanks
    Sarastro
    • #4
    • 25th Sep 17, 7:18 PM
    • #4
    • 25th Sep 17, 7:18 PM
    Can you get a cheaper loan as well? 14.9% is quite high...
    • amberdog
    • By amberdog 29th Sep 17, 7:41 AM
    • 5 Posts
    • 0 Thanks
    amberdog
    • #5
    • 29th Sep 17, 7:41 AM
    Sainsbury loan
    • #5
    • 29th Sep 17, 7:41 AM
    I have had 3 loans from Sainsburys, overpaid on all and got interest refunds. I also have a loan from my bank, Barclays which I have had an account with for over 20 years. just made a £2000 overpayment and only £ 1970 taken off. I fully expected £2000 + interest to be deducted I am not happy and will go with Sainsburys again if I ever need a loan
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