Advice on early repayment of a loan needed

mytoy78

Hi,


Itook out a new personal loan combining an old loan and some newmoney totalling £12500 with halifax.It is with a five month paymenthoidayto start of with (which im in month 1 of). Myquestion is that I will have around £5000 cash at the end of this month and thought it'd be a good idea to pay some of the loan of with it - is this a good idea or should i stick it into an overpayment on my mortgage and make the agreed paymentds onthe loan? thanks for anyone who helps.




Cheers


ca

Moonbeam

If you have taken out an unsecured personal loan with Halifax it doesn't give you the option to overpay....


It would mean paying off the full amount and re-negotiating for the remaining amount....depends what this would do to your APR.....what APR are you on at the moment?

mytoy78

It's 7.8 Percent, not too sure.


on your second point I meant would it be better to put the spare money into my mortgate (seperate from the loan althogether) and keep the halifax loan as it is.



thanks for replying



ca

jonesMUFCforever

5 month holiday period?---- This means of course 5 months of racking up interest which you pay for the privelege.

regularsaver1

Halifax don't do 5 month payment holiday's

you pay on the third month not 5th

if you repay loan early - you will have to pay 2 months interest penalty. these details appear on your agreement