Early Redemption Cost?

benbuilder

I need to borrow £20,000 for about 10 months, then I will be in a position to pay the balance back in full.
I am unable to increase my mortgage before anyone suggests that option!
I want my monthly payments to be as low as possible.

I can get a £20,000 loan from Northern Rock who have no early redemption charge but am unsure as to what interest I will have to pay back.
If I took this over 10 years so the payments are low (around £220) and paid it back in full next year would I only pay the interest paid to date or would they throw in the interest tht would have been paid if the loan had run it's course? Or is there anothere way they work it out?

Any help would be greatly appreciated.

Thanks

givemeabreak_2

Hi, I am in the process of getting a £20,000 loan from NR.
It states:
After 30 months balance to repay would be £15,990.65
60 months £11,382.59
90 months £6,086.42
So if you pay it off after 30 months at £217.85 per month, it will have cost you £22,526.15.
It does not give a settlement figure for less than 30 months, you could ring them and ask. :cool:

Robert_Sterling

Have you considered asking Northern Rock? If not then why not do so?