Barclays Finance Partner Settlement Figure

GreenmanBRS

Hi all,
Raising this on behalf of someone else so I may miss the odd bit of information out*
They have a Barclays Finance Loan which is used for Windows/Doors - It was a 120month agreement which they're now around about 63 months into. The loan started around £8600 and they have around £5k left (They pay £110 PM but interest gets added on of course) 
They called Barclays today and they have said the early settlement figure is £5100 and that there is no incentive to pay this off early. Is this correct? As they're moving, they do need this to be paid off.

Any help would be much appreciated. 
 

[Deleted User]

The incentive is to avoid future interest.

The sooner they pay it, the more they save.

molerat

Looks pretty much spot on. £6800 loan over 120m at £110 pm gives an apr of around 9.3%.  After 63 payments around £5100 of capital is left. The remaining payments come to (120-63x110) £6270 so saving around £1100 interest.