Central Capital secured loan early repayment.

spektral

I applied for secured loan of 16k over 20 years with central capital. Asked the guy on the phone if I was going to get done over if I tried to repay early, say in 3 or 4 years time? he said. "No were quite good here, all you have to pay is 2 months interest + £117.50" I was quite pleased so went ahead and get him to send out the details.

after reading it all through I found this...

"You have a right to bring this agreement to an end at any time during the duration of the Agreement by making a single payment. For Example, the amount you would have to pay for every £1,000 barrowed if you wanted to settle the agreement when a quarter of the agreement's duration had passed would be £883.29 :if half the agreements duration has passed would be £696.86 :and if three quarters of the agreement's duration had passed would be £419.88........they assume the 28 day notice period has been given.


so from this I am assuming it means, say after 5 years I pay it all off I would owe the £883.29 x 16 = £14132.64 + 2 months interest + the £117.50 fee?

Is that right? I want to make sure I've covered myself before entering into any secured loan after reading through this forum! Thanks for any help you can give, I'm not the best when it comes to things like this..

Cheers, Matt

jonesMUFCforever

I'm not sure whether it is the figure you quote or whether its that figure as a penalty for early settlement and the capital balance outstanding as well.

I would take particular care before signing any agreements - if there is any doubt about you not knowing what you are signing then take independent advice from someone like CAB.

Do you have to go through this company? - I would have thought that a further advance from your present lender or a complete re-mortgage would be a cheaper and better option for you.

CLAPTON

what is the interest rate

Butlers1982

you will pay 2 months interest, plus a brooker fee if you have used one.

This is one thing that many people arent aware of, as broker fees are included in the amount repayable over the total term of the loan.
If you pay a loan off early and the broker fee was £500, then you have to pay the full 500.

saturn15

strange that as i wanted to repay my loan with ge money which was 12k and i had exactly the same settlement clause as your contract but when i did repay after having the loan for 18months out of 64 i only had to pay one months interest of £87 and £200 exit fee though as this was not on the original credit agreement i am now going to try and reclaim this fee.
i would not have tried to if it wasnt for martin informing us about MEAFs!
thanks martin!