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Northern Rock Unsecured Loan

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daz_free
daz_free Posts: 50 Forumite
in Loans
Hi,

I am going to get a Northern Rock unsecured loan. One of the reasons for choosing Northern Rock is that they let you pay off the loan early without charging a settlement fee.

However if I do pay off the loan early will I have to pay all the outstanding interest for the loan? For example, if after 1 year of the 3 year loan I have enough to completely settle up on the loan will I:

i) Have to pay the outstanding loan amount for the 2 years
or
ii) Have to pay the outstanding loan amount for the 2 years plus the 2 years remaining interest aswell.

Any help would be much appreciated.

Thanks,

Darrell ;)

Comments

  • Luke
    Luke Posts: 112 Forumite
    The first option I guess. Check when exactly you can settle without incurring any penalties, it is usually after a year.

    Hope they don't try and screw you for 8.9% as this appears quite common with NR.
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