ZOPA - interest added at the beginning?

[Deleted User]

Probably stupid question but I see that ZOPA add the interest at the beginning.

If I have a 12 month loan, but repay early in say 6 months, does the interest recalculate?

Or am I still liable to pay the entire amount inc interest originally calculated?

stevenhp1987

I would expect the interest to re-calculate. Note they may charge an additional 58 (~ 2 months) days interest on any settlement.

They are most likely showing the "balance" as if you paid each monthly instalment as is.

LMS94

They front load the loan yes but if you make extra payments / pay it off early, the interest will be recalculated.

You can read some more information here: http://help.zopa.com/customer/portal/articles/2474147

[Deleted User]

The interest isn't front loaded. It's just how they display it.

Interest is accrued daily, so early settlement wiil avoid future interest.