Very confused: Help please?

Seanymph

They say 'You may repay all amounts payable by you under this agreement early either in part or full....'

there are no premiums detailed for doing that, apart from it costs £12 if you do it over the phone by card (which is why I sent a cheque, but it cost me a month!).

SeanG79

Reducing the term and maintaining or increasing the monthly payment will reduce the overall interest paid.

What you need to ensure is that Santander will agree to reduce the term. Banks have their own rules regarding over payments. Some will only reduce the term, others only reduce the monthly payment, while some will allow both options. I am not sure but perhaps Santander only lower the monthly payments but maintain the term until the agreement is settled in full?

SeanG79

Seanymph wrote: »

They say 'You may repay all amounts payable by you under this agreement early either in part or full....'

there are no premiums detailed for doing that, apart from it costs £12 if you do it over the phone by card (which is why I sent a cheque, but it cost me a month!).

All regulated finance agreements allow over payment. The CCA allows the bank to charge 59 days additional interest on over payments/early settlements.

Seanymph

No, they told me I could make a choice - and both times discussed with me that lowering the monthly payment would save me most money on interest.

I phoned twice because I couldn't make that make sense.

The first time last November, then again in February:

My notes say:
1. Pay off lump sum, reduce balance - pay normal amount monthly, finishes sooner, doesn't save any money.
2. Reduce monthly instalment - same length - less interest.

they told me that on the telephone on 17th February 2014. The current balance outstanding on the 17th Feb (it generated a letter) was £6,443.44 with a settlement figure within 10 days of £5,490.47.

We have an outstanding balance currently of £4721.28 I don't know if this is a settlement figure, or what I have left if I follow the payment schedule.

I thought they were supposed to make this easy!