Nationwide Personal loan - overpayment

ringo747

Hi, I just wanted some clarification please on the nationwide personal loans. If my monthly payment is £500 but I choose to pay £750 then will this be allowed or will there be overpayment charges?

Is this different from an early settlement?

Thanks

National_Debtline

Hi Ringo

Not sure I can give you a definitive answer without seeing the terms & conditions of your specific loan agreement. One warning I would give though is not to assume that overpaying one month allows you to underpay by that same amount in a later month.

What does your agreement actually say regarding overpayments and early settlements?

Regards

Dennis @NDL

ringo747

Hi, I phoned earlier and they said I can overpay but there would be a fee for early settlement. I mentioned overpaying up to 500/month and they said fine no problems.

Thanks.

thegrind

IIRC Nationwide will charge 2 further months interest on top of the final payment. but dont quote me on that.

elantan

I had a loan with them myself, your loan may be different so don't take what I say as guaranteed but

I could over pay however much I wanted I was not allowed to pay it off though otherwise I would incur 60 days interest ... However I could pay enough so that all that remained was a months payment ... Then when that months payment came out I would be free of the loan but not have incurred any charges ... So say I owed £5,000 and my monthly payments were £500 ... I could pay £4500 off and then when my direct debit came out for the £500 I would have effectively paid off my loan with no charges ... My loan had to finish with my monthly payment

There was a small matter of interest accrued ... Now that was meant to be that the next month another payment for £500 would come out but that I would get it all refunded apart from the interest accrued bit

However ... For me the interest accrued was less than £10 so thy agreed to scrub it ... Now if I had chosen to phone up and pay the £10 then I would have been charged the early repayment fee ... So my intention was to just pay the direct debit as usual and wait for the refund ... For me though they waived the less than £10

As I say double check your own