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Paying a loan off early?
Hi
Quick question. My husband and I are looking to put our house up for sale in the summer and are currently getting our finances in order before we apply for a mortgage. We had a few credit cards, OD and loans between us but, thanks to help from family, have cleared nearly everything except one last loan which we hold with NRAM.
We did have a loan with Natwest which was 4000. We paid off 3700 last week and are about to pay the remaining 300 off it at the end of the month. However, since we paid the 3700 natwest have recalculated the remainder of the loan over the remaining months we were supposed to have the loan open at £36 a month till jan 2016.
I want to know if it is better to clear the loan at the end of the month as intended (which will close the account down) or to keep the £36 a month payments until jan 16 (which will leave the account open). I have read than on a credit reference file an open account which has regular payments recorded on there holds more weight than closed accoubts. Is this right?
Any help would be appreciated!
Thanks!
Quick question. My husband and I are looking to put our house up for sale in the summer and are currently getting our finances in order before we apply for a mortgage. We had a few credit cards, OD and loans between us but, thanks to help from family, have cleared nearly everything except one last loan which we hold with NRAM.
We did have a loan with Natwest which was 4000. We paid off 3700 last week and are about to pay the remaining 300 off it at the end of the month. However, since we paid the 3700 natwest have recalculated the remainder of the loan over the remaining months we were supposed to have the loan open at £36 a month till jan 2016.
I want to know if it is better to clear the loan at the end of the month as intended (which will close the account down) or to keep the £36 a month payments until jan 16 (which will leave the account open). I have read than on a credit reference file an open account which has regular payments recorded on there holds more weight than closed accoubts. Is this right?
Any help would be appreciated!
Thanks!
0
Comments
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You're over thinking it.
Don't pay unnecessary interest.0
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