Early settlement of Santander Loan

I rang to get a settlement figure for our loan and was astonished to discover that it would be cheaper to let the loan run to Oct 11. The amount needed to pay is £1467.73 BUT the next two repayments of £109.08 need to go through on top of this figure. That means I need to pay £1685.89 now to pay my loan completely. I have 14 months of £109.08 left to pay which comes to £1527.12. That means that it is £158.77 cheaper to let the loan run to the end of the term!

I rang again today to get someone to explain why this has happened. When she worked it out she too was surprised at the figures and said that she had never experienced it before. She went to speak to her supervisor who said that it was right but that there may be an interst rebate depending on when the loan is cleared. (What if there isn't and I would have been better off leaving the loan open?)

Just to make it worse I asked if I could pay the amount through online banking and was told that it could only be paid by cheque or cash or D/D. I am sure that this is so that they can get just a bit more interest out of you while you wait for them to clear your loan.

Has anyone else expereinced these problems with Santander?
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