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Halifax loan
Hi I'm looking at the how I go about paying a loan off early. I've asked for an early settlement quote but it's slightly higher than the loan balance. I owe £6,015. Someone mentioned to me that they normally reduce a loan for early settlement. If I decide to pay a lump sum off instead will my monthly payments reduce?
Any advice or help appreciated
Any advice or help appreciated
0
Comments
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The settlement will always be slightly higher than the current balance, due to the two months early settlement fee.
Few lenders reduce the monthly payment if you pay off a lump sum (Santander are an exception), but it will of course finish earlier.0 -
https://www.halifax.co.uk/loans/help-guidance/managing-your-loan/
This page says you can make 'additional payments' which I would take as being on top of your usual payment so it wouldn't reduce the monthly amount.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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