santander early repayment fee please help

jack_hacket

hi, can anyone help me make sense of my loan agreement. I have just applied for a santander loan to consolidate my credit cards and get away from 20% apr. I have taken the loan out for 4 yrs, but i plan to save and pay it off in 2.
However on my loan agreement it says under early repayment fees...
if you wanted to settle the account when half the period had passed the settlement amount per £1000 borrowed would be £561. If im borrowing 15k thats an early settlent fee of 7k, surely thats not right??

If this is correct Im not gonna take the loan out.

thanks in advance

MrRedundant

No its not right.

It means in 2 years you can pay 15k off for a final settlement of £8415 therefore the total cost would be £8415 plus the amount paid to date.

dizzyblonde82

To pay it off after you have made half of the monthly payments you would need to make a one of payment of £8415 (£561 x 15) this is not a fee but the amount to settle the account.

jack_hacket

fantastic, thanks.
Had a hard day at work and im obviously being pretty stupid!!

thank you.