Paying off a loan early
Niasian
Posts: 1 Newbie
Hi all i'm just looking for some advice.
im 16 months into a Fixed-sum re-financing loan of £3900. I pay 98 quid a month for 48 months (10% apr with Lloyds TSB). I've got the money to pay it back but I'm just wondering is it worth it. Would I have to give the interest of the 48 months back?
In the terms of the loan it does say that if I repay the loan back early I must pay a admin fee of 58 days interest (max £250).
Finace is not my strong point, so please can somebbody advise?
Thanks in advance for your words of wisdom!
Nia
im 16 months into a Fixed-sum re-financing loan of £3900. I pay 98 quid a month for 48 months (10% apr with Lloyds TSB). I've got the money to pay it back but I'm just wondering is it worth it. Would I have to give the interest of the 48 months back?
In the terms of the loan it does say that if I repay the loan back early I must pay a admin fee of 58 days interest (max £250).
Finace is not my strong point, so please can somebbody advise?
Thanks in advance for your words of wisdom!
Nia
0
Comments
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It looks like you have to pay 2 months worth of interest to them as a penalty for repaying early, so it would save you money on interest in the long term if you repaid now. If you've got the money it would be a good idea to repay the lot because the interest you pay on the loan is more than you could earn on it in the bank.
I'm rabbitting on now, sorry!
Best idea is to contact them to ask for an early settlement figure.
Jo xx:heartpuls :heartpuls0 -
Have you decided to pay it off early? it certainly seems like the cheapest option despite the 58 days interest charge.
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