Paying off an RBS Loan Early?

Kraezae

Hi guys,

Basically i'm a debt free wanna be so will have enough cash next month to bring my loan to an end early.

This all sounds good however upon speaking to my friend, i was advised not to pay it off all in 1 go as i will be charged extra for doing so......is this correct or a load of BS?

Hopefully someone can clarify this for me.

Thanks :beer:

DCFC79

There may be a fee but what does the contract say ?
Or
Pick up the phone and ask rbs.

Or do both.

Kraezae

I shall just phone them tomorrow. It was just on the off chance that anyone here had experience and possibly knew at this late hour

NYGiants

If you're paying a loan off early then they may try to apply approx 58 days interest, so you're better off paying a very large lump sum (equal to your settlement figure minus one months payement) then let the last direct debit payment end the loan (saving you 58 days interest).

Or you can pay off 99% as a lump sum payment, then when that payment has cleared phone back and ask for another settlement figure; this way you're only paying 58 days interest on 1% of the original settlement figure.

NorthernOne

NYGiants wrote: »

If you're paying a loan off early then they may try to apply approx 58 days interest, so you're better off paying a very large lump sum (equal to your settlement figure minus one months payement) then let the last direct debit payment end the loan (saving you 58 days interest).

Or you can pay off 99% as a lump sum payment, then when that payment has cleared phone back and ask for another settlement figure; this way you're only paying 58 days interest on 1% of the original settlement figure.

I am in a similar position with LLoyds and this is very helpful. Thanks.