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  • FIRST POST
    • itisgeorge
    • By itisgeorge 10th Apr 18, 1:02 PM
    • 2Posts
    • 0Thanks
    itisgeorge
    Early repayment of Natwest loan - save money?
    • #1
    • 10th Apr 18, 1:02 PM
    Early repayment of Natwest loan - save money? 10th Apr 18 at 1:02 PM
    Hello,

    I have a 4,000 loan with NatWest a few years ago (no date to hand), with a rate of 25.90% and a monthly repayment of 122.94. The interest seems to be charged monthly and the remaining loan balance is 3,325.60. Does this monthly interest all get added when you pay in a lump sum regardless?

    I'm looking to potentially reduce this debt by early repayment by taking out a seperate low interest loan from Zopa for instance. I'm a bit confused if repaying early actually saves money, as the last early settlement figure I requested was higher than the balance shown on statements.

    Will I actually be paying more than the balance shown on the statements if I continue to pay monthly?

    I also understand that you incur a early settlement fee that I can avoid by not completely paying in full and leaving a months payment remaining to be collected normally.

    Appreciate any help.

    Cheers
Page 1
    • zx81
    • By zx81 10th Apr 18, 1:27 PM
    • 18,672 Posts
    • 19,936 Thanks
    zx81
    • #2
    • 10th Apr 18, 1:27 PM
    • #2
    • 10th Apr 18, 1:27 PM
    The earlier you pay, the more interest you save, as interest is calculated daily and added monthly.
    • itisgeorge
    • By itisgeorge 10th Apr 18, 1:40 PM
    • 2 Posts
    • 0 Thanks
    itisgeorge
    • #3
    • 10th Apr 18, 1:40 PM
    • #3
    • 10th Apr 18, 1:40 PM
    perfect! So does the balance shown on say, online banking, include the interest? If not, does that mean the balance would technically increase if I continue paying monthly to include the interest?

    Thank you!
    • StokieBecks
    • By StokieBecks 11th Apr 18, 8:12 AM
    • 4,596 Posts
    • 27,831 Thanks
    StokieBecks
    • #4
    • 11th Apr 18, 8:12 AM
    • #4
    • 11th Apr 18, 8:12 AM
    The balance shown does not include interest usually . The settlement amount will always be higher than the remaining shown on a statement

    Request a settlement figure. That is the only way to get and up to date amount you need to pay to close the account.

    However I would not be considering swapping one debt for another. You are not guaranteed you will get a low rate loan. How many months left of your existing loan? Is that your only debt?
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