Early Settlement - no reduction

redpete

Lou1973 wrote: »

Believe me, I have already paid off what I initially borrowed, plus interest.

Believe me, you haven't. Each month you pay off a bit of the capital with the rest of the payment made up of the interest built up over the previous month. At the beginning of the loan most of the payment is interest, at the end of the loan most of the payment is capital with a small amount of interest. You do not finally pay off the complete amount borrowed until the last payment.

ViolaLass

OP, is the £6k left the number of payments left multiplied by the amount of each payment or the amount that the bank says you still owe? If the latter, then it does not include future interest and would therefore attract no rebate.