Can you get a loan you can overpay on??

sunshine_shell

My Alliance and Leiceter loan doesn't accept overpayments and i was wondering if it was worth getting one i could overpay on?

Thanks

CLAPTON

depends upon your circumstances

charlie2517

Hi there,

Depends on the loan - you need to ask them for a quote on a loan where you can. I got quotes for loans a few months agp with my main bank (natwest) and they gave me options covering - flexible payments (ie where I could pay more), fixed rate and variable rate loans, as they were the loans I wanted to compare. My advice is just make some enquiries and see. From personal experience it is. I've just paid off one loan early through making extra payments.

If you cant - one way (at a small cost) would be to invest the extra payments in a high interest isa/account (yes you wouldnt be getting the same interest rate each way) but it'd certainly be cheaper to redeem earlier by saving the extra money you want to pay off it than not doing it, and just paying the set payments each month and spending the additional money you want to pay elsewhere.

Good luck!

anticlaus105

I have had Nawtest loans and the penalty for paying early is one months interest I think.