early repayment charge? quick question

mk1mark

hi im looking to take out a loan for aprox £2000 the repayments over 5 years would amount to roughly £3500.

i plan to pay the loan off in several months after selling a car. i will incur a early repayment fee on the standard interest rate of 58 days.

what i want to know is will this be ontop of the £3500 or will i only have to pay the interest ive built up to the date i plan to pay it. plus the 58 days?

thanks alot mark.

loopy.magic

If you take out a loan with a mainstream bank then you will save money by paying the loan early (the interest over 5 years), there normally is an early repayment or settlement penanty as you've stated. If you're absolutely sure of paying off the loan in a few months you may want to look at getting a 0% interest credit card instead. That way you wouldn't pay any interest at all or early repayment fee, you just have to be deciplined enough not to use the card for anything else like purchases.