Bounce Back Loan Scheme- repayments

benfrostbite

Hi all,
I have limited company and am able to get a BBL but have some reservations due to the wording on the Santander wording regarding the repayments. They government say that they are covering all of the payments for the first 12 months on these then it will be 2.5% from the 13th month for 6 years. Which is great. 

However, in the wording that they want me to sign states that on a £25k loan the ‘Total Amount Payable’ is £27,215. Which seems normal but they keep using the term ‘Total Amount Payable’ even when they explain settling the loan early. 

My concern is that when I want to get out of the loan before the 12th month is up ( which would be my plan) I will be expected to repay £27k instead of the £25k borrowed. They state that there is no early settlement fee’s etc but always use the term ‘Total Amount Repayable’ which is listed to include the interest for the full 60 months. (£27k)

I don’t want to get into a 0% loan that actually will costs me £2k+ to have for just 1 year so am being careful and am reaching out for advise. 

Any help or wisdom on this would be most appreciated. 

Many thanks in advance. 

becky3343

Sorry I can't answer your question but I'm in a similar situation and have applied for a £20k loan from Santander. I didn't think about the interest side so thanks for bringing this up. I wanted to know whether I could pay back most of the loan as early as possible (eg after 11.5 months) and then the rest later because their wording says "You may settle this repayment in full at any time". They say early repayment is possible but this makes me wonder whether you can only pay the full amount early.

I would message them through their secure messaging service on online banking to check. Will let you know if I get any more info

MarkJones4

Lloyds website states that interest will be calculated monthly from month 13, hope that helps