Bounce Back Loan & Early Repayment

becky3343

I applied for a BBL yesterday afternoon and got my letter in the evening which I'm super happy about!
I've read over the contract and it looks great apart from one thing in regards to early repayment:
"You may settle this repayment in full at any time"
What if, at the end of year 1, I'd like to pay 75% of the loan back? I'm worried that under this agreement, I can only pay back 'in full' and so I'd have to hold onto the 75% until I can make up the extra 25% and in the mean time, I'll be paying interest back on the 100% that's still owed.

Grumpy_chap

In the official FAQ on the .gov website it says:

"Can I repay early?

Early repayment is permitted at any stage, without early repayment fees."

I had understood that to mean that full or partial early repayment would be allowed.  Now I see your question I am not so sure - maybe it is worth asking your bank will to clarify?  I will be interested in the answer.

Jeremy535897

I am almost certain that this would also mean you could pay part off at any time, and pay interest going forward on the outstanding balance, but ask your lender if you are concerned. They will expect you to start making repayments of capital, and payments of interest, 12 months after the loan is taken out.

MarkJones4

Lloyds bank state that early repayments can be made at any time but must be a minimum of £2k at a time. I think they are trying to limit the cost of managing these with people trying to pay small extra payments here and there, hope this helps