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Early repayment of loan

GAzr35
GAzr35 Posts: 1 Newbie
in Loans
Am I correct in thinking if I repay all but 2 months worth of payments on a loan, the lender can only penalise me regarding early repayment penalties on the remaining balance once the lump sum payment has been applied to the balance?

Comments

  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    All depends on terms of loan and whether you are allowed to make that kind of overpayment. Make sure you check how interest is applied too. No point in you 'giving' cash to your loan company if they are going to keep charging you interest on the original loan (effectively putting your overpayments into a 0% savings account alongside your loan).

    Good luck

    R.
    Smile :), it makes people wonder what you have been up to.
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