Settling a loan early

backinbusiness

Looking for some advice from you experts please?

I'm looking to settle a BoS loan early, and have been making extra payments to that effect. Should I clear it all bar the amount of the normal monthly instalment to avoid having an interest penalty applied?

I've read something to that avail, but can't quite remember the details.

Help please?

Thank you.

BiB

DCFC79

What does your agreement say about settling early.

zaber86

backinbusiness wrote: »

Looking for some advice from you experts please?

I'm looking to settle a BoS loan early, and have been making extra payments to that effect. Should I clear it all bar the amount of the normal monthly instalment to avoid having an interest penalty applied?

I've read something to that avail, but can't quite remember the details.

Help please?

Thank you.

BiB

Usually you can pay all but.... say £1... so you can avoid the early settlement fee. When you ring them up and ask how much money do you still owe, they will ask if you want to hear the settlement amount. You say no, just want to hear how much you owe, then you pay all but the £1.

But as has been said above, it all depends on what is on your contract

backinbusiness

Ach - sad to say not a clue where the original documentation is. It was 6 years ago, when I was in a very different, and difficult financial state. Thanks though, for your help.

zaber86

backinbusiness wrote: »

Ach - sad to say not a clue where the original documentation is. It was 6 years ago, when I was in a very different, and difficult financial state. Thanks though, for your help.

Then you might as well pay all but the £1... or your monthly payment amount if you prefer. Got nothing to loose.