Santander Loan Overpayments

kerber0s1983

Hi All,

Maybe someone can help to save me phoning Santander.

I recently took out a loan with them to replace an out one at a higher rate.

when my credit card is paid off in a few months i plan on making some massive overpayments on my loan to reduce the term. Can i do this through my internet banking or do i have to phone them and change the direct debit amount?

Also if it is paid off early will they charge the usual 58 interest on it?

Thanks
Martin

Common_Sense_2

it depends on when you took out the loan - was it after 1st february this year?

kerber0s

Common_Sense_2 wrote: »

it depends on when you took out the loan - was it after 1st february this year?

Hi, Yes it was - sometime in April 2011

Common_Sense_2

kerber0s wrote: »

Hi, Yes it was - sometime in April 2011

Ok then, you have the right to "partially settle" the agreement by making overpayments at any time.
You need to make them aware of this by either calling them and saying "I want to make a payment of £x as a partial settlement of the agreement", ( or write to them with a cheque stating the same thing ).

They will then be able to restructure your loan with less interest and fewer payments.

kerber0s

Can i call them and ask for the direct debit to be changed everything month to a certain amount so i dont have to write a cheque every month or just setup a standing order for the overpayment? Hopefully my credit card is going to be paid off in Aug and after this i want to make the normal payment of 232 each month plus 500 extra each and every month until the loan is cleared.

Theblueone

Just as a matter of interest I have a Santander loan prior to feb 2011 and a few days ago got a letter to say that they are introducing the same opportunities for partial payments as are now in place for post feb 2011 loans so this is good news:T