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Can I overpay on a loan?
kindofagilr
Posts: 6,825 Forumite
My fiance and I have a loan with lloyds for £21k
We pay £369 a month off the loan and its for 7 years (due to end March 2016 eek)
Is it possible to pay more off the loan each month? say some months we have £50 spare can we pay the extra off the loan to bring the term down?
Or would we be better off putting the £50 spare (or however much we have spare each month) into a savings account?
We pay £369 a month off the loan and its for 7 years (due to end March 2016 eek)
Is it possible to pay more off the loan each month? say some months we have £50 spare can we pay the extra off the loan to bring the term down?
Or would we be better off putting the £50 spare (or however much we have spare each month) into a savings account?
Debt £30,823.48/£44,856.56 ~ 06/02/21 - 31.28% Paid Off
Mortgage (01/04/09 - 01/07/39)
£79,515.99/£104,409.00 (as of 05/02/21) ~ 23.84% Paid Off
Lloyds (M) - £1196.93/£1296.93 ~ Next - £2653.79/£2700.46 ~ Mobile - £296.70/£323.78
HSBC (H) -£5079.08/£5281.12 ~ HSBC (M) - £4512.19/£4714.23
Barclays (H) - £4427.32/£4629.36 ~ Barclays (M) - £4013.78/£4215.82
Halifax (H) - £4930.04/£5132.12 ~ Halifax (M) - £3708.65/£3911.20
Asda Savings - £0
POAMAYC 2021 #87 £1290.07 ~ 2020/£3669.48 ~ 2019/£10,615.18 ~ 2018/£13,912.57 ~ 2017/£10,380.18 ~ 2016/£7454.80
£79,515.99/£104,409.00 (as of 05/02/21) ~ 23.84% Paid Off
Lloyds (M) - £1196.93/£1296.93 ~ Next - £2653.79/£2700.46 ~ Mobile - £296.70/£323.78
HSBC (H) -£5079.08/£5281.12 ~ HSBC (M) - £4512.19/£4714.23
Barclays (H) - £4427.32/£4629.36 ~ Barclays (M) - £4013.78/£4215.82
Halifax (H) - £4930.04/£5132.12 ~ Halifax (M) - £3708.65/£3911.20
Asda Savings - £0
POAMAYC 2021 #87 £1290.07 ~ 2020/£3669.48 ~ 2019/£10,615.18 ~ 2018/£13,912.57 ~ 2017/£10,380.18 ~ 2016/£7454.80
~ Emergency Savings: £0
My Debt Free Diary (Link)
0
Comments
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kindofagilr wrote: »My fiance and I have a loan with lloyds for £21k
We pay £369 a month off the loan and its for 7 years (due to end March 2016 eek)
Is it possible to pay more off the loan each month? say some months we have £50 spare can we pay the extra off the loan to bring the term down?
Or would we be better off putting the £50 spare (or however much we have spare each month) into a savings account?
Hiya,
You will have to look at the paperwork for your loan agreemnet to see if it allows overpayments and doesn't penalise you for making any extra paymentsSparky0107 - Sealed pot challenge member #002. Total for SPC3 £1,030.57 Total For SPC 4 £2247.00 Total for SPC 5 £2574.62 :T Total for SPC 6 £4552.91:T
:rotfl:LC2 & Jakes-Mum are off their heads :rotfl
:j DEBT FREE AS OF 20/01/2012 :j0 -
Some loans you are actually charged extra for if you settle early. It would be better to write to them to enquire about this so that they will answer your specific query rather than saying put it in an account and pay in a lump sum. Some banks may allow this, but it all depends on the T&C of the loan. You may be able to overpay by £x a year or you may be charged extra if the loan is settled early.
I'd write and see what they say.
I'd rather pay it off if possible as it will mean you are paying less interest.After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91
Dad Gift 6k ¦ Savings & Inv Tst: £2,500
Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0
Total Owed: £2,270 (+6k) 11/08/20110 -
Ok thank you, my fiance said that when he took the original loan he was told we could pay off more than the monthly payment (but sometimes he doesnt listen properly lol so I will have a look through the paperwork)
By original loan I mean we borrowed £10k in his name, then just in Jan we extended it to £21k to get a deposit for a house, stupid of us I know, but we really wanted our own house.
I am not worried about the loan or anything, we can afford to pay this off every month and our bills.
I just wondered if we could pay it off quicker
I will look at the paperwork, thanks for your repliesDebt £30,823.48/£44,856.56 ~ 06/02/21 - 31.28% Paid OffMortgage (01/04/09 - 01/07/39)
£79,515.99/£104,409.00 (as of 05/02/21) ~ 23.84% Paid Off
Lloyds (M) - £1196.93/£1296.93 ~ Next - £2653.79/£2700.46 ~ Mobile - £296.70/£323.78
HSBC (H) -£5079.08/£5281.12 ~ HSBC (M) - £4512.19/£4714.23
Barclays (H) - £4427.32/£4629.36 ~ Barclays (M) - £4013.78/£4215.82
Halifax (H) - £4930.04/£5132.12 ~ Halifax (M) - £3708.65/£3911.20
Asda Savings - £0
POAMAYC 2021 #87 £1290.07 ~ 2020/£3669.48 ~ 2019/£10,615.18 ~ 2018/£13,912.57 ~ 2017/£10,380.18 ~ 2016/£7454.80
~ Emergency Savings: £0
My Debt Free Diary (Link)0
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