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Loan terms help
Hi everyone, not posted before but looking for some advice. Had to take out a loan 5 years ago for uni and have been paying it off since. I have made some lump sum payments online to reduce the amount etc. However upon calling up natwest today to discuss the possibility of reducing the amount paid each month, they informed me that as i made the payment online, this automatically reduced the term of my loan vs the amount paid per month. I was informed that had i made the payment over the phone i would have been given the option of which one i wanted. Surely this is not permitted, if i had options over the telephone shouldn't i have been made aware of this when making the payment over the internet. I can afford the payments but i would prefer to reduce them as it suits me better. Any advice on this would help. I am about to have a read of the t&c of the loan to see what it says but i can't help but think this is a bit inappropriate to say the least.
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Come back once you've read the T&Cs.Hi everyone, not posted before but looking for some advice. Had to take out a loan 5 years ago for uni and have been paying it off since. I have made some lump sum payments online to reduce the amount etc. However upon calling up natwest today to discuss the possibility of reducing the amount paid each month, they informed me that as i made the payment online, this automatically reduced the term of my loan vs the amount paid per month. I was informed that had i made the payment over the phone i would have been given the option of which one i wanted. Surely this is not permitted, if i had options over the telephone shouldn't i have been made aware of this when making the payment over the internet. I can afford the payments but i would prefer to reduce them as it suits me better. Any advice on this would help. I am about to have a read of the t&c of the loan to see what it says but i can't help but think this is a bit inappropriate to say the least."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
If you've been actively paying it back and your history with them is good, they might be more open to negotiating new terms with you. What they have done is probably somewhere in their T&Cs, but it doesn't hurt to speak with them.
Best wishes with it. x0 -
I was in the same situation a few months back with Nationwide. All the extra payments did was reduce the term of the loan. They would not let me reduce the monthly payments (even for a short period) despite the overpayments.
The only way of doing it would have been to take a new loan out which I didn't want to do. Sorry probably not the answer you wanted but I suspect Nat West won't be much different.0 -
Contractually your repayments are for a fixed amount every month. It's not possible to simply vary them at will. Even though you've made overpayments. The net effect will be to reduce the loan term.0
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Thrugelmir wrote: »Contractually your repayments are for a fixed amount every month. It's not possible to simply vary them at will. Even though you've made overpayments. The net effect will be to reduce the loan term.
I understand what you are saying, but upon telephoning them they say i would have been given the option to either reduce the term or the loan or reduce the monthly payments and retain the overall duration of the loan. It was Natwest when i telephoned them who said i could actually vary them at will if i would have phoned them rather than done it on the internet.0 -
Did you have a look at the T&Cs?I understand what you are saying, but upon telephoning them they say i would have been given the option to either reduce the term or the loan or reduce the monthly payments and retain the overall duration of the loan. It was Natwest when i telephoned them who said i could actually vary them at will if i would have phoned them rather than done it on the internet."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
Google search and one click took me to this page.
You can make overpayments to your loan at any time and this could shorten your loan term. Before you do this, we recommend that you contact us to discuss the impact of the extra payment before you make it.
The second click gave me:
We recommend you contact our Lending Team or visit your local branch if you would like to discuss the impact of the overpayment before you make it.0 -
With hindsight might it not have been better for the OP to have used the money paid back early to build up a savings pots for emergencies?
He could apply for a new loan to repay the old one over a longer period to reduce the monthly payment.0
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