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Making overpayments on a loan

lynxptc
lynxptc Posts: 280 Forumite
Part of the Furniture 100 Posts Combo Breaker
in Loans
Sorry if this is a silly question but if you make overpayments on a loan will the interest payable be reduced or is the interest fixed from the start?

Comments

  • georgiasmum
    georgiasmum Posts: 390 Forumite
    I think it will be reduced but if you have an early repayment clause you may have to pay 1 or 2 months interest as a penalty for overpaying/settling early.
    THE LONG AND THE SLOW ROAD SEEM TO APPLY TO DEBTS AND DIETS... THE TWO THINGS I WANT TO SEE THE BACK OF...:D
  • Xbigman
    Xbigman Posts: 3,918 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    There are lots of different loans and even two loans for the same amount from the same company can be different. First off check the terms and conditions of the loan. If that is not clear then just phone them up and ask.
    Regards



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