Paying extra on an RBS loan each month

mrsmiggs1979

Hi everyone,

Thought there may be some wise people on here who can help me as the bank have been useless!

We took out a loan 3 years ago over a 10 year period at a cost of £136 a month and an apr of 17.1%

We are now in a position to pay more each month and hope to clear it as soon as possible. I have been into the branch and have tried calling their "helpline" but they only seem interested in me increasing the loan!! I keep being told that early repayments will result in me paying 58 days interest each time I make a payment but nobody can tell me how much this will be. They said the first time there will be no charge but cant tell me how much we will be charged each month thereafter.

Can anybody tell me?

We have £6500 left. Able to pay £1000 lump sum and then £400/500 per month thereafter.

Should we do this? or should we apply for a new loan with another company and spread the £5500 over 12 months?

Thanks

downhiller

We've got an RBS loan. Ours allows overpayments but they have to be a minimum of £500. We made a £5k overpayment last year and we just popped into the branch and did it there and then.

happy_bunny_2

Probably depends on the terms and conditions. You have a copy?

My OH just makes extra payments via direct banking.

eilidh_s

I have an RBS loan and I just set up a standing order to overpay it every month. I get the occasional letter telling me my monthly direct debit has come down and I just change the standing order to keep the payments the same. They wouldn't keep the payments the same and change the term for me but I can pay it off whenever I want.