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Payoff 3 year loan within 4 months - minimise interest/charges
I took out a loan with Sainsburys for £12000, at 2.99% over 3 years.
I am now able to clear it early, which they allow - but there will be 2 months interest charged as an early repayment fee/penalty.
They allow unlimited overpayments, so I wanted to check if it is better that I paid £11000 now to bring the balance down to £1000, and then next month pay off the remaining £1000.
Would I be charged the 2 months interest for the remaining £1000, on the £12000 balance, or the original amount due?
I am now able to clear it early, which they allow - but there will be 2 months interest charged as an early repayment fee/penalty.
They allow unlimited overpayments, so I wanted to check if it is better that I paid £11000 now to bring the balance down to £1000, and then next month pay off the remaining £1000.
Would I be charged the 2 months interest for the remaining £1000, on the £12000 balance, or the original amount due?
0
Comments
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You will be charged in accordance with your agreement. If your agreement say no interest/fees for overpayments but 2 months interest charged if you clear the loan.0
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