Lump sum loan repayment - advice please

f0rtheL0v3ofF00D

Hi I have been so inspired by people's stories on here and can't believe helpful this forum can be.

Here's hoping someone knows something about this...

I have a loan that is fixed rate finishes August 2020. I currently pay £377 a month. If i was to make a lump sum payment of £1000. Does anyone know what this would bring my monthly payment down to or if it's even possible to work this out?

stuart1975

Sometimes the Lender has a tool on their website that allows you to see what effect an overpayment will have on the loan. I seem to remember Lloyds Bank had one when I had a loan with them.

Failing that, Google an Excel Loan Calculator spreadsheet. Excel is very powerful, and with the right set of calculations you can get pretty accurate figures for loans and interest payments. You can then factor in any overpayment you like and get an idea of what difference it will make.

f0rtheL0v3ofF00D

stuart1975 wrote: »

Sometimes the Lender has a tool on their website that allows you to see what effect an overpayment will have on the loan. I seem to remember Lloyds Bank had one when I had a loan with them.

Failing that, Google an Excel Loan Calculator spreadsheet. Excel is very powerful, and with the right set of calculations you can get pretty accurate figures for loans and interest payments. You can then factor in any overpayment you like and get an idea of what difference it will make.

Thanks Stuart, will give this ago. Desperate to get my monthly payments down!

pab233

I also have a loan, and any overpayments that I make reduce the remaining term, rather than reducing payments.

f0rtheL0v3ofF00D

Ah I see. I do know for sure I have the option to do either. It is set out in my terms and conditions. For me the lower monthly payments will be much better.