Reducing car finance payments??

Rachelbr21

I have a car currently on hire purchase. Nationwide have said if I can get the payments down on it they are happy to go ahead with our mortgage. We can't afford to pay the car off in full but we could pay a chunk off it. Does anyone know if they will reduce the monthly payments for me if I do this?? I can't see anything about it in the contract.

Tixy

If overpayments are allowed then some lenders will keep the term as is and reduce the remaining payments, some will reduce the term and keep the repayments the same and some will allow the borrower to choose.

You'd need to contact your lender to see what they say in your case.

Alternatively how far are your from the voluntary terminate point in your HP agreement? If its not far away could you afford a lump sum payment to VT it early?

Rachelbr21

Tixy wrote: »

If overpayments are allowed then some lenders will keep the term as is and reduce the remaining payments, some will reduce the term and keep the repayments the same and some will allow the borrower to choose.

You'd need to contact your lender to see what they say in your case.

Alternatively how far are your from the voluntary terminate point in your HP agreement? If its not far away could you afford a lump sum payment to VT it early?

Ok it says in the contract regarding repaying part early "we shall reduce the total amount payable by you under this agreement by the amount of your early payment and rebate allowable by law."

I'm only into it by a year and it's a 48 month contract.:mad:

bigadaj

Rachelbr21 wrote: »

Ok it says in the contract regarding repaying part early "we shall reduce the total amount payable by you under this agreement by the amount of your early payment and rebate allowable by law."

I'm only into it by a year and it's a 48 month contract.:mad:

So you need to clarify with them how they treat overpayments, that quite is ambiguous.

I know hindsight is a wonderful thing but didn't you have any idea a year ago that you might want to buy a house, and that as affordability seems to be tight then a new car could have been avoided?