Totally confused re overpaying loan...

SeanG79

No it will save you slightly more by paying the £100 each month

ice_babe

Really, SO what was she on about saying that it would cost more to overpay each month? As she was saying the interest charged is the same weather we paid £100 or £500 :mad:

CLAPTON

ice_babe wrote: »

I have
On the Sainsburys website



Can I make overpayment?

Yes, overpayments are where you pay more than your required monthly repayment. If you inform us in advance of making an overpayment we will apply this to your loan and this will reduce the total amount of interest you pay over the term of your loan and may reduce your loan term. Any overpayment without notice will only change the period over which you repay the loan and will not affect the rate of interest payable or the total amount repayable. If you want to make a lump sum payment, please send a cheque payable to 'Sainsbury's Bank' with your name and loan agreement number written on the back of the cheque to:- Sainsbury's Loans, Customer Services, Tower House, Charterhall Drive, Chester CH88 3AN.

Or, if you wish to make a payment electronically please use sort code: 126000, account number: 08110052 and quote your agreement number as the reference




Nothing about any "fees" for overpayments

what do your written T&Cs actually say


but the general principle is the earlier you pay the better. (i.e. less interest you pay)

ice_babe

Will have to dig them up.

If we want to make regular overpayments would we better off to apply for a Zopla loan and overpay that?

SeanG79

Loans taken out after February 2011 can be paid with overpayments without penalty. They incur 58 days interest only, which previously was only enforced when the agreement was settled early in full...

ice_babe

This was taken out in Nov 2012

Just looked at Zopa, There quote was 7.1% interest, Would have swapped if they offered the 4.8%

SeanG79

Yes so your loan was taken out AFTER February 2011.

If you make the £100.00 overpayment in the long term you will save money vs. delaying that and saving the £100 and paying £600 every 6 months.

SeanG79

ice_babe wrote: »

Will have to dig them up.

If we want to make regular overpayments would we better off to apply for a Zopla loan and overpay that?

Overpayments will work the same irrespective of the lender, provided its an unregulated agreement.

AFK_Matrix

ice_babe wrote: »

This was taken out in Nov 2012

Just looked at Zopa, There quote was 7.1% interest, Would have swapped if they offered the 4.8%

Problem with Zopa is you have to have a very good credit record from what I hear, so even though you have that quote it doesn't mean you'd get a loan with them anyway so don't feel to bad about it.

ice_babe

Just had a phone call from Sainsbury's bank. As I emailed them to clarify what I was told on the phone.

The lady said that we had been given totally the wrong information and that there was no fees or interest charged for overpayments. She is also going to try and trace the call and identify who gave us such wrong information.

So from next month we will overpay and we can make overpayment via our online banking every month