Repay FD Loan

forkspoon

Hi all,

I have finally cleared my credit cards and now just a First Direct loan (@ 9.9%) left that has around another 2 years to run. Although I now have an extra £500/month to throw towards this they won't let me overpay, apparently I must take out a new loan with the higher monthly repayments to pay off the existing loan, but this is at a higher interest rate.

Is this standard procedure? In the past I have had an egg loan that let me overpay by as much as I wanted....

Any advice would be appreciated, would love to get this paid off asap

Thanks!

~Beanie~

Some loans allow overpayments, some don't.

Can't you stick the extra £500 per month into a savings account until you have enough stashed away to repay the loan in full?

forkspoon

Cheers, did a bit more investigation last night and seems its not a flexible loan, my mistake.

Will just put the money into a savings account until it evens out. Thanks.