Paying a loan back early?

Straubo

Hi guys and gals,

I take a £10000 loan over 10 years.
The early redemption charge is one months interest.
After one year I want to pay it all off.
Do I really only pay one months interest e.g 8.6% of £118? (Plus the amount I owe)

Thanks folks! :beer:

jonesMUFCforever

No you will pay up to 56 days interest on the amount outstanding when you repay.
You will always pay a lot more interest early on in the loan.

Straubo

Thanks for that matey!

CLAPTON

well
10,000 x 8.6% /12 = £72 although you will have paid some capital off so it will be a little less
you may pay up to two months interest depending exactly upon when you pay the loan off
but basically yes it's not a lot and much better than seeing the loan through to the end