Early Repayment Advice

simon.treacher

Hi All

Advice please:

My wife is in the process of settling a Lloyds Loan of £12000.

Balance: £11,937.19
Overpayment: £11,595.00
Left to pay: £342.19

Now I was under the impression that asking for a settlement figure would involve 58 days interest on the remaining amount of £342.19.

However when my wife called for a settlement figure she was quoted a final figure totalling over £700!!! :eek:

Can someone please advise if this is correct or not? To say we were stunned is an overstatement!

Many Thanks
Simon

[Deleted User]

Ask them for a breakdown.

But I'm confused by your 'overpayment' of almost the full amount. Did she take the loan out and then pay it almost all back immediately? What has she made in regular contractual payments?

simon.treacher

She took the loan out in September 2013 but we are suddenly in a position to clear her loan. Payments started in October.

Thanks

[Deleted User]

So what payments has she made and when?

simon.treacher

October, November & December £341.42 - Repayment Holiday January.

Paid to date:
£1024.26

[Deleted User]

I'm confused. When was the £11.5k overpayment made?

simon.treacher

Paid 17/2/2014 - £11,595

Leaving so they informed her £342.19 left on the loan.

StuC75

How did you arrive at the balance of £11,937.19..

Since most balances would include the interest for the term? so would see the interest rebates from the 11k repaid

Who was the loan through? is there anyway of seeing this breakdown online?

Tixy

Have you made the large but not full overpayment to try to avoid the 58days settlement interest?

I think your issue is likely to be that you are still trying to settle too soon after the overpayment.

Leave next month's payment to go out as normal, and then likely just have a few pounds to pay after that.

simon.treacher

That's what I was thinking Tixy, so if I leave the February payment to go through it would leave virtually nothing left to pay. Couple of quid tops!

What do I do then? Ask for a settlement figure or wait for them to contact me?

Cheers

simon.treacher

StuC75 wrote: »

How did you arrive at the balance of £11,937.19..

Since most balances would include the interest for the term? so would see the interest rebates from the 11k repaid

Who was the loan through? is there anyway of seeing this breakdown online?

The £11,937.19 is the current balance - that's what they quoted. The loan is with Lloyds. They haven't given me a breakdown.

They said when my wife rang on the 17th to pay the majority of the loan (£11,595) she also asked for a settlement figure.

She didn't but they are saying she did they are charging the the 58 days interest on the full amount left (£11,937.19) totalling £12,340.57. Less the £11,595 paid that still leaves £745.57!!!!

As we are now, again, in a settlement period of 30 days I don't know what to do for the best!