Early Loan Repayment Confusion

JBE38

Morning, New here, tried searching but not been successful.

I have 2x Zopa loans, which I want to pay off early. Between the 2 loans I have a total of £350 in early repayment fees. I don't really know how this works and I can't find much information. 

Zopa don't charge for overpayments and reduce the monthly payments, as opposed to the term of the loan. If I was to leave say £100 on each loan, could this avoid the fee? I would be fine paying the minimal payment for the remaining 2.5 yrs, interest would also be minimal. Or even generate a new settlement next month? I don't know if the interest is calculated off the remaining balance or 58 days interest based on the original loan balance? I'm really confused by it all.

Thank you.

molerat

https://www.zopa.com/help/article/what-are-early-repayment-charges

Have they specifically quoted you as early repayment fees ?

JBE38

Yes, I took the loans in 2023. They changed their policy previous to this but truthfully, I hadn't noticed as I've had loans with them in the past.

On the settlement quote, it lists it at thr bottom on a seperate heading.

I'm gonna try it and see what happens, worst case I end up paying the 58 days interest anyway.

molerat

It should be 58 days based on the outstanding balance, should be fairly straightforward to figure it out roughly.  The idea of paying off a large chunk with no penalty and carrying on with lower payments / shorter term is a well trodden path.