FD loan

Akahotpot

Hi gang
I have a 60 month loan from First Direct and I have 5 months left to pay to be cleared
The details of the loan now appear on the FD app (very handy) and I can see that the full monthly payment is coming off the balance like the loan is interest free now .

I am selling my house and will be going into rented accom for a few weeks while my house purchase catches up so will have a lump sum of money above what I need as the deposit

Is there any pro or con to clearing the loan early ?
Thanks

[Deleted User]

You'll save a few months of interest. Probably 3 months, once the 2 months early repayment is charged.

So always worth doing.

Ebe_Scrooge

Ignore the spam from Michael Rettallick

Akahotpot

Thanks ZX81
Just to double check
so I have not paid all the interest already that,s just how the app makes it seem ?

[Deleted User]

Correct. .

Akahotpot

Many thanks I will clear it

Thrugelmir

Akahotpot wrote: »

so I have not paid all the interest already that,s just how the app makes it seem ?

No. Every month you'll be charged interest. Only part of your repayment will reduce the capital balance owed.

anto164

To clarify, the balance that you see is the value INCLUDING interest. If you phone and ask for a settlement figure, it will be less than appears on the app.

I only know this as i have a FD loan too!! :beer:

Best thing is just to call them.