Loans with no overpayment penalty

ceminem

Does anyone know of any?

iamadave

I believe you can with Zopa, not sure if many others do.

carlisleboy

I have an Egg loan and after the 6th payment, they allow you to make additional payments. When you type in how much extra payment you want to make, it tells you how much less interest you will pay overall.

I think most banks, don't allow it though, well not without completely new agreements being drawn up.

asandwhen

You can over pay a Lloyds Tsb loan without penaulty - you will be charged a penaulty if you pay the whole thing off though.

All you would need to do to avoid a penaulty would be pay off all the loan apart from 1 payment - let this 1 payment come out and then you wont be charged.

jemw

lloyds tsb allow you to op as much as you want

DesG

Also Black Horse loans (part of LTSB) allow you to make overpayments at any time.

Again, like Lloyds, if you want to pay it off complately, pay off an amount leaving just short of 1 DD and your loan will be paid off without penalty.

Cheers, Des.

jonesMUFCforever

I think most lenders will let you overpay.
If this is important to you it is imperative you find out BEFORE taking out a loan whether you can make overpayments.

ceminem

jonesMUFCforever wrote: »

I think most lenders will let you overpay.
If this is important to you it is imperative you find out BEFORE taking out a loan whether you can make overpayments.

Note I asked if anyone knew which lenders do NOT charge a penalty

OMAR

just egg i think

CLAPTON

ceminem wrote: »

Does anyone know of any?

the general situation is that very few companies actually charge a penalty for overpayments... if fact I can't think of one at the moment..doubtless others will give lots of examples

however, some companies don't allow overpayments

and

some companies allow overpayments but they just hold the money in a holding account and so the total interest due does not go down so it makes no sense to overpay as you would be better off saving the money in a saving a/c.

jonesMUFCforever

ceminem wrote: »

Note I asked if anyone knew which lenders do NOT charge a penalty

See Clapton's excellent reply.

Are you confusing overpayments with early repayment though?

Whilst most lenders will allow overpayments without charge - most will also charge up to 2 months interest if you want to repay the loan early.
(Of course there are ways round this)