Early Repayment - Lendable

mdnn85

I have a loan with Lendable where under my schedule it shows the current balance as being in the region of £4000, however, when I request my early settlement figure it says it will be around £4250.

I’m guessing the difference is something to do with a sort of interest penalty being added for settling early which I know most lenders do.

However, unlike some other lenders Lendable allow you to overpay your loan if you can. So my query is if I overpay my loan by £3750 for example and let the final direct debit go as planned, would this avoid me paying the interest penalty?

Not sure if that makes sense but it does in my head, lol - I know it’s only £250 but that could go toward another debt at the end of the day. 

Thanks in advance for any advice 😊

MorningcoffeeIV

Possibly, but check your terms to see if there is an ERC on any early repayments, not just the final one to clear the loan.

Bigwheels1111

Make sure you get confirmation in writing. Ie a letter or email.
I wanted to finish my Halifax mortgage and asked for a settlement 2 more payments.
They sent a letter stating 2 X £354.63 clears your mortgage and debt.
Great, paid and was mortgage free. YES.
3 months later they sent letters demanding £150 settlement fee or such like.
It was in your T&C etc.
I contacted them and told them to go for a long walk off a short pier.
Your letter dated X said 2 x £354.63 settles the debt.
See you in court, many thanks.
Two weeks later, on this occasion we will write off the £150.
6 months later I got a check from them as they had miss calculated the interest wrongly £450.
Win Win.
Keep letters forever.

Nasqueron

Bigwheels1111 said:

Make sure you get confirmation in writing. Ie a letter or email.
I wanted to finish my Halifax mortgage and asked for a settlement 2 more payments.
They sent a letter stating 2 X £354.63 clears your mortgage and debt.
Great, paid and was mortgage free. YES.
3 months later they sent letters demanding £150 settlement fee or such like.
It was in your T&C etc.
I contacted them and told them to go for a long walk off a short pier.
Your letter dated X said 2 x £354.63 settles the debt.
See you in court, many thanks.
Two weeks later, on this occasion we will write off the £150.
6 months later I got a check from them as they had miss calculated the interest wrongly £450.
Win Win.
Keep letters forever.

What a win!

Though I would say, scan (or photograph) letters and upload them somewhere, better than paper which can easily get lost and a good backup either way