Front loaded loans question

moozie_2

Hi there :hello:

Quick question please - can't believe this only occurred to me today but there you go.

With front loaded loans, is there any saving to be made in paying them off early? If the interest has already been charged, I am struggling to see the advantage of paying sooner rather than let them run their course.

I have two of those loans and although I have been aiming to start overpaying on one soon, I am not sure if it's worth it now

Many thanks

Moozie x

HouseHunter_2

I have one of these loans. If I pay it off early the interest will be refunded proportionately (with no early repayment penalties) however if I overpay it there is no advantage. Therefore I'm building up savings to enable me to pay it off in full early. I'm not sure if this is how yours works, might be worth checking.