Overpayments to firstplus

guest1_2

I have a £30000 (8.9%apr) loan with firstplus. It was something I had to take out as a stop-gap, but am now in a position to make some hefty overpayments. My aim is to get the loan below £25k asap, then repay it using a conventional loan. Fees for paying off early are 2 months interest + "admin charge" which I believe is around £150.

Any advise on the best way to make the overpayments as I think they are kind enough to make a charge for the facility:mad:. Should it be smaller sums as the money becomes available, or put in £5k in one go (around November) then repay in full with other loan?

Thanks

inmypocketnottheirs

TBH you will get hammered any way you try to do it. I would personally bang of lump sums as and when you can and take the hit, as you will still be saving money in the longer term.

guest1_2

Thanks - as you say better to reduce the amount outstanding asap to reduce interest etc. According to firstplus the minimum overpayment is 10% of the balance (in my case approx £2900), they will charge an "admin fee" of £60, although I fail to see how administering a payment costs £60.... and 2 months interest of the payment - around £44 for £2900. Costly - yes, but will save lots longer term, especially if I can get the balance below £25k and change to an unsecured loan.