End Personal Loan Early?

David1984_2

I have had a Personal Loan with the Nationwide Building society for 7 years. I have one year (12 payments remaining) until it is complete.
My question is:

Should I repay the loan early (one lump sum)?
Or increase my monthly repayments to finish the loan early?

What financial penalties will I be presented with if I choose to do either of the above?

I have had a look on their website and there doesn't seem to be any clear information.

Many Thanks

jaybeetoo

Why don't you phone them up and ask them? Once you have the figures for the various options you can make a decision or post back here for advice.

David1984_2

Thanks, it does look like calling them is the answer.

Are loan companies not regulated to charge the same fees?

_Andy_

It's not fees they will be charging - prob 1-2 months interest. Would have been on your loan paperwork or just ring them.

David1984_2

I have called them.
So I can finish the loan early but only slashing off around £100 of the final cost.
If I want to overpay I have to work out the calculations myself.
Turns out they are willing to show the breakdown for lending MORE money but refuse to advise on an early repayment plan.
That sums up loan companies really. Priorities all wrong.
Instead of trying to get their customers out of debt they want to make it easier to increase their customers debt!

Alexd52

David1984 wrote: »

I have called them.
So I can finish the loan early but only slashing off around £100 of the final cost.
If I want to overpay I have to work out the calculations myself.
Turns out they are willing to show the breakdown for lending MORE money but refuse to advise on an early repayment plan.
That sums up loan companies really. Priorities all wrong.
Instead of trying to get their customers out of debt they want to make it easier to increase their customers debt!

What loan companies really want is more interest payments from you. You have been reliable for the last 6 years in their eyes, so they would see you as low risk, hence trying to encourage you to take another loan out.

kimandju

If you have the money to pay it off early, could you put that into an account earning you some interest and continue to pay it off from there?
I've paid off loans early before, but they incurred no penalty for paying early.
Hope that makes sense, newby round here! lol

CLAPTON

David1984 wrote: »

I have called them.
So I can finish the loan early but only slashing off around £100 of the final cost.
If I want to overpay I have to work out the calculations myself.
Turns out they are willing to show the breakdown for lending MORE money but refuse to advise on an early repayment plan.
That sums up loan companies really. Priorities all wrong.
Instead of trying to get their customers out of debt they want to make it easier to increase their customers debt!

One would image that the sole and only purpose of a loan company was to lend.