Blackhorse loan

lee8040

I have a Blackhorse loan for a motorbike. It's £79 a month for approx 48 months. I can make additional payments when I like. I owe approx £3400 if I was to make a payment of 2k would it lower the payments so that the loan still ends in 44 months time or will the payments still stay at £79 but end sooner?


Was going to phone tomorrow but wondered if anyone knew sooner

McKneff

I would think your payments would remain the same because it is that amount that is in the contract.


Anything else would be breach of that contract

lee8040

Why would it be breach of contract, the interest is already on the loan amount so if I paid it off in 2 months or 48 months they would still get there full amount of interest

KRB2725

I've just paid a lump sum off of a loan and the repayments have remained the same. It's not with blackhorse though.

lee8040

I have just found out my settlement figure is 3k but if I paid 2k lump sum is still owe £1400 so I'm better off saving an additional £900 and pay the settlement figure

Nearlyold

The European Consumer Credit Directive effective 01/01/13 introduced the statutory right to make partial repayments, a partial repayment will either reduce the term and keep the same monthly payment or reduce the monthly payment and keep the same term. Either will result in a reduction in the total interest payable but it is up to the lender which option they offer (some offer both).

KRB2725

That figure sounds as though they haven't taken into account the interest rebate.

When I paid my lump sum off, the amount owing was simply the balance minus my overpayment. When I requested a new settlement figure it was lower as the interest had been recalculated to reflect the overpayment.