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Lloyds TSB loan overpayment help needed
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atypicalblonde
Posts: 3,057 Forumite
Hi everyone!!
Well, I am pleased to say that we had our bank charges refunded this week :j so my next task is to overpay on one of the debts, a Lloyds TSB loan.
The loan wasnt taken out very long ago (still pre-LBM though - d'oh!), and I understand that you pay more of the interest off first with your monthly repayments, and as the loan period progresses it is only then that you start to really attack the capital amount (please someone feel free to correct me if I'm wrong!)
Anyhoo, my question is this - we are going to throw some of the bank charges money as an overpayment on aforementioned loan. Now, will this overpayment just do as the monthly payment does and go mostly on the interest? Or will it pay off the pure capital amount?
Really hope this makes sense (had a bit too much sunshine today
)
Anyone have any thoughts? thanks in advance F xx :A
Well, I am pleased to say that we had our bank charges refunded this week :j so my next task is to overpay on one of the debts, a Lloyds TSB loan.
The loan wasnt taken out very long ago (still pre-LBM though - d'oh!), and I understand that you pay more of the interest off first with your monthly repayments, and as the loan period progresses it is only then that you start to really attack the capital amount (please someone feel free to correct me if I'm wrong!)
Anyhoo, my question is this - we are going to throw some of the bank charges money as an overpayment on aforementioned loan. Now, will this overpayment just do as the monthly payment does and go mostly on the interest? Or will it pay off the pure capital amount?
Really hope this makes sense (had a bit too much sunshine today
)Anyone have any thoughts? thanks in advance F xx :A
MFW 
[STRIKE]Mortgage 8.2.15 - [/STRIKE][STRIKE]£171,064.64[/STRIKE] Mortgage 1.5.2018 - £99,980.45
[STRIKE]Mortgage 8.2.15 - [/STRIKE][STRIKE]£171,064.64[/STRIKE] Mortgage 1.5.2018 - £99,980.45
Aiming to be MF 1.10.2020
0
Comments
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Hello
If your interest is calculated daily, then any monies you 'throw at it' will come off the capital of the loan, reducing your term interest charge accordingly.Proud To Be Dealing With My Debts - 1420 Days To Go!LBM: £103,592.98 / Currently £78,500.08 - Down 24.22% / Mortgage: £92,800.00 / Loan: £17,284.21 / Overdraft: £450.09 / C/Card 0%(October 08): £5,601.54 / C/Card 0% (January 09): £1075.22 / Child Care: £137.80
Share Investments: £51,390.74 / Money Owed From GS: £5,812.610 -
thanks for that... will it say in the original loan agreement how the interest is calculated?MFW
[STRIKE]Mortgage 8.2.15 - [/STRIKE][STRIKE]£171,064.64[/STRIKE] Mortgage 1.5.2018 - £99,980.45Aiming to be MF 1.10.20200 -
It should do yes,
If you have any queries, contact the customer help line and they will be able to confirm how interest os calculated, % APR etc etc....Proud To Be Dealing With My Debts - 1420 Days To Go!LBM: £103,592.98 / Currently £78,500.08 - Down 24.22% / Mortgage: £92,800.00 / Loan: £17,284.21 / Overdraft: £450.09 / C/Card 0%(October 08): £5,601.54 / C/Card 0% (January 09): £1075.22 / Child Care: £137.80
Share Investments: £51,390.74 / Money Owed From GS: £5,812.610 -
Also check your T&C that you can actually repay on the loanI am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.0
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