how easy is it to repay a loan early

anon123456

Hi All

I have a loan with hsbc which i owe £2469 left over 7 months

My wife and i will be looking to buy a house in the new year using a gift deposit from her parents. This gift amount should cover 20% deposit plus fees plus about 5k

I know the loan will affect the mortgages i can obtain.
Would i be able to repay the loan by just paying it off in one lump sum. I quite stupidly didnt keep the t's and c's from the loan.

Willling to pay a (small) fee to do this if required

Thanks

CLAPTON

yes, you will need a settlement figure from them

saskay

anon123456 wrote: »

Hi All

I have a loan with hsbc which i owe £2469 left over 7 months

My wife and i will be looking to buy a house in the new year using a gift deposit from her parents. This gift amount should cover 20% deposit plus fees plus about 5k

I know the loan will affect the mortgages i can obtain.
Would i be able to repay the loan by just paying it off in one lump sum. I quite stupidly didnt keep the t's and c's from the loan.

Willling to pay a (small) fee to do this if required

Thanks

As Clapton suggested, you should call up HSBC Loans dept. and ask them for a settlement amount. The amount quoted will usually be good until just a few days before the day your next loan payment is due. I do not think legally they can charge you a fee to pay the loan off early but you pay the interest till the month end in which you are paying the loan off.

I recently paid of a loan 1yr early and saved quite a bit. Way much then what I would have gotten if I put that money in a savings ac.

charleyroo

hi, just paid off a loan myself. they might charge you up to 56 days interest on the remaining balance but there is no fee as such.

jonesMUFCforever

If they accept ad hoc or overpayments pay them say £2400 now THEN ask for a settlement figure.
This way any early settlement fee will be worked on the outstanding lower figure.

jobdone1

Do what i did pay a lump amount leaving at least one months direct debit still to come out that way you only pay interest for one month on the small amount of for argument sake £200 which would be £15 this is a guide only.
If you pay off in full now and you have £2500 you would pay 1 months interest on that balance which would be far more than the small amount. As i say without your figures this is a guide.
hope this helps.

[Deleted User]

I was advised (by a bank manager, strangely enough), to pay all but the last payment, and let the last payment go via DD, at the next payment date.

Apparently, it avoids an early settlement fee.

jobdone1

Bedsit_Bob wrote: »

I was advised (by a bank manager, strangely enough), to pay all but the last payment, and let the last payment go via DD, at the next payment date.

Apparently, it avoids an early settlement fee.

You where lucky to get someone to help, I worked this out myself santander did not offer any options but tryed to sting me for nearly £250 they got £70 happy days