Loan Early repayment and monthly repayment

Mo_L · 11 June 2016 at 5:12PM

Hello Guys,

I have a question.

I'm looking to buy a car and I want to take out a personal loan. I understand an early repayment can carry an additional charge depending on the lender but will it also affect the monthly repayment? As in, I want to have the funds available so if I come across the car I want, I'm ready to buy. Then sell my current car off to pay off half. I'm curious as to whether there's a way to also have the monthly repayment dropped as a result. Has anyone here ever done this? Any advice would be much appreciated.

Thanks guys.

Nearlyold · 11 June 2016 at 5:41PM

Lenders have to offer a reduced term same payment or reduced payment same term but they only have to offer one of the options (most offer reduced term same payment) some offer both options you'll have to ask the lender you plan to borrow from.