early repayment interest!

griff11

Hi i'm sorry if this question has been posted elsewhere. I took out a loan two years ago with HSBC for 5,000 but needed to increase this loan to do some home improvements in january. When i went to the bank for 7,000 they said fine they would role it all into one single loan, but to do this would have to pay off the first loan including all interest i.e three years worth and then start another 5 year loan for this extra amount. My credit rating has always been good and i never miss a payment but i just feel i have been stuffed, is this usual or legal. oh and by the way i am paying 15.9% APR.
Hope this isnt a commonly asked question and would appreciate anyones views on the matter, thanks

[Deleted User]

ive done this a number of times with ALPF but they gave me a settlement figure each time for the old loan which included an early settlement discount,i`m surprised this isnt what hsbc has offered you

LeeSouthEast

Usual? Depends on the lender.
Legal? Most certainly.

CLAPTON

griff11 wrote: »

Hi i'm sorry if this question has been posted elsewhere. I took out a loan two years ago with HSBC for 5,000 but needed to increase this loan to do some home improvements in january. When i went to the bank for 7,000 they said fine they would role it all into one single loan, but to do this would have to pay off the first loan including all interest i.e three years worth and then start another 5 year loan for this extra amount. My credit rating has always been good and i never miss a payment but i just feel i have been stuffed, is this usual or legal. oh and by the way i am paying 15.9% APR.
Hope this isnt a commonly asked question and would appreciate anyones views on the matter, thanks

you're simply wrong... post up the full figures and we can show you how it worked.