Repaying loan early - Full or Part Payment?

pixies15

So I now have enough funds to clear one of my loans. I was of the impression that if you repaid early in full you got charged a 2 months interest early repayment fee, but if you made a part repayment and then let the direct debit take care of the final few payments you avoided this.

Is this true, because now I cant find out anything about it.

Its with my bank and I can see my balance and the monthly interest they charge me, but it says that this balance is not the amount I need to pay off to settle and I need to request a final amount. This figure will of course include their fee will it not?

Do I just repay almost all of it and let it run for a few months more to avoid early repayment fees, or do I not need to do this and should I just request the final settlement figure?

redpete

It should be defined in the Ts&Cs from your lender, without understanding these no-one can really help.

Nearlyold

As above you need to check your Ts&Cs

Some lenders charge no early repayment fees at all.

Some lenders charge only on full settlement.

Some lenders charge on full and partial settlement, with these the tactic of paying most off then leaving the DD to clear the rest won't work in terms of avoiding early settlement charges.

All the above are perfectly legal as defined in the early settlement regulations as amended to incorporate the European Consumer Credit Directive.