Loan overpayments or clear it

Guru86

Good afternoon

We have recently moved to a new house and needs some work doing so taking a loan of 8000 to do this. We currently pay loan payments of 450 a month, this will be consolidated into the 8000.

The payments over 4 years is around 178.00. I want to take it over this 4yr term but keep overpaying to 450.00 to clear it quicker but giving us flexibility if anything unforseen happens and i need the loan payments to be lower.

My question is do I make overpayments every month or bank the money and make a lump sum every year?

Now reading loan terms it looks as though it's fee free to make overpayments but charge a fee for a lump sum? Is this right oir will I get a charge if finish it earlier?

Thank you

AnotherJoe

It depends what a your loan agreement says. Unless you post the wording here, no one can possibly know.

Guru86

There is no agreement yet as not gone ahead just planning. It looks like Sainsburys would be the one I pick.

ViolaLass

178 x 12 = £2136, which is less than £8k.

Also, we still can't read the agreement you might pick.