Lloyds tsb loan - early settlement query

kahunababy

Sorry for hijacking this thread, just after a bit of advice. I have a loan with Lloyds that is due to finish in July. my monthly payments are £404. I have just checked online and my outstanding balance is £764.08. Can I make an prepayment of £360.08 leaving £404 balance to be collected as usual on 2nd of Feb and this would then clear my loan? Sorry I am just a bit confused???

Paul_the_Painter

Hi Kahunababy,

Those number don't make sense, if your payments are £404, you'll have paid off the loan in 2 months anyway. I's just leave it to run to term, which is probably not July, but March (poss April depens on the date your DD comes out)

Call them and ask when your loan is due to finish.

But there would be nothing stopping you making a payment of say £400 now, and then your nwxt direct denit would be adjusted down to the ourstanding amount.

It will be larger than £764.08 though, as interest is added every month on the LTCB loan, not all lumped on at the begiining.

kahunababy

Hi, thanks for the advice. I agree that the numbers don't make sense but I have double checked and the final payment is due in July. Although I pay £404 not all of this comes off the balance as I think most of it is interest. I just want to get this cleared and the option of paying £764.08 rather than £2020 is obviously more appealing and for the first time in an age I am in a position to do this, yay!

ejc81

kahunababy wrote: »

Hi, thanks for the advice. I agree that the numbers don't make sense but I have double checked and the final payment is due in July. Although I pay £404 not all of this comes off the balance as I think most of it is interest. I just want to get this cleared and the option of paying £764.08 rather than £2020 is obviously more appealing and for the first time in an age I am in a position to do this, yay!

So where does the £2020 figure come from?

kahunababy

5 payments of £404 = £2020

ejc81

kahunababy wrote: »

Sorry for hijacking this thread, just after a bit of advice. I have a loan with Lloyds that is due to finish in July. my monthly payments are £404. I have just checked online and my outstanding balance is £764.08. Can I make an prepayment of £360.08 leaving £404 balance to be collected as usual on 2nd of Feb and this would then clear my loan? Sorry I am just a bit confused???

kahunababy wrote: »

5 payments of £404 = £2020

Ok now I'm with you

No, you cant because the interest is added monthly if you pay £360.08 there will be £404 plus interest left at the end of the month. If you want to clear it by next month you will have to pay more. I couldn't say how much without knowing what rates you're paying, but if you could afford to pay say £600 this month, and then they will just collect what ever is still owed next month.

kahunababy

That's great, thanks for the advice. Looks like I will finally be able to get rid of this loan!!!