Loan Settlement

coldasice_3

Hi All,

taken out a loan for £20000 with northern rock over 10Years 10/01/2006 payments £229 a month got a settlement fig, yesterday for about £18800 do i pay it of or do i leave it in bank so it pays it's self off & hopefully erns interest?

Merry Christmas
:beer:

Phoenix79_2

Whats the apr of the loan? Its bound to be higher than what you can earn in your account or even in a savings account. If you have the money, pay it off.

Xbigman

Yes, pay ot off. Even if you can make some fraction of a percent in interest it will not be worth it.
Regards.


X

coldasice_3

Hi,
Thanks that's what i'm going to do.

tamilreader

Hi,
Have a look at your T&C for the loan. If you pay it off on the whole then you might be charged a pre-payment fee. One other option would be to just leave the last instalment and pay off the remaining amount so that you would not have to pay the fee. Just make sure that the principle + interest equals to the last instalment.
Good luck
G