Overpaying on fixed payment loans (nonflexible)

Firsttimebuyer_4

Hi,

What happens if I transfer additional money to my loan account? My loan account has a sort code an and account number so it should be possible.

Will i get a warning letter and be "penalised"?
Will the computer just continute to take payments from my account but finish it earlier (when repaid)..


Just wondering.

bexterwho

I'd like to know the answer to this too!

Bump!

Astaroth

The best thing to do is ask the lender as all set their own rules. When I considered doing this I was simply told that the payments would continue as normal but when the loan finished repayment early that I would then get the early settlement penalty applied.

Firsttimebuyer_4

Hmm...

This might be worth it since paying slighlty more off now will drastically reduce the interest. The early repayment penalty for my loan is 1 months interest.