Overpayment on Admiral Loan

applesandpears2025

Hello, 
I have been offered a loan of £7,000 over 4 years @ £195 p/m 16.4% APR (for debt consolidation). The total repayment over 48 months would be £9389.
Start date: February 2025
End Date: February 2029

If I was able to repay abit more each month for a small time, say £220 would this reduce the overtime of the loan and clear it faster without a crewing interest? (so reducing the loan from 48 month to 40 months overall for example).

this is form their website:

I would like to make an overpayment

If you wish to make an overpayment to pay off more of your Admiral Loan, your monthly payments (other than the final one), will remain the same and therefore the loan term will reduce, unless you tell us you want to reduce your monthly payment. Additional payments can be made by using the details below:

Admiral Money

Use your Agreement Number as your reference

Account number:

10530557

Sort code:

20-18-23

If you want to pay us from a different account or a way that is not currently registered with us, please contact customer support.

many thanks.

applesandpears2025

I did not do the proper calculations above on the exact amount to repay back.... I was just wondering if I were to overpay slightly each month, would the loan term end earlier than February 2029?

CliveOfIndia

Yes, any overpayments you make will reduce the amount of interest you pay overall - as long as overpayments are permitted without any penalty.

Some lenders will use overpayments to reduce the monthly payment whilst keeping the term the same, others will keep monthly payments the same whilst reducing the term - you can ask them to take one approach or the other, if their default position is different to your preference.

However, from what you've posted, it appears that their default processing is to reduce the term - if that's what you prefer then there should be no issues.

Either approach will reduce the overall interest, it's really down to personal preference.