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Loan Overpayment

BoGoF
BoGoF Posts: 7,099 Forumite
Part of the Furniture 1,000 Posts Name Dropper
Anyone any recent experience of overpaying a M&S loan and if/how any reduction in interest was given. My situation - borrowed £7500 @ 6.4% APR, total repayable £8878.80. Have made 7 monthly repayments of £147.98 = £1035.86 so balance £7842.94. Phoned recently to make £1500 lump sum overpayment. Today my balance is £6342.94 so no adjustment for interest rebate. When I had a tesco loan and did similar they would credit my balance with the interest rebate - perhaps M&S do it differently?

Any suggestions?

Comments

  • Smedders11
    Smedders11 Posts: 127 Forumite
    100 Posts
    They may refund the extra interest once you've repaid the repayable total. Contact them to be sure of their arrangement.
  • fusionx212
    fusionx212 Posts: 327 Forumite
    Smedders11 wrote: »
    They may refund the extra interest once you've repaid the repayable total. Contact them to be sure of their arrangement.

    i've had it added at the end of the loan before.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The total payable is the figure if you pay if you let the agreement run for its whole course.
    If you overpay the total amount of interest will reduce so from next month the interest charged should reduce.
    You have not paid the interest up front so this is how many loans are run these days. There will be no rebate as such to show on your loan account.
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