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Chat => General Discussion => Topic started by: Pete on February 21, 2010, 14:32:21 PM

Title: Early loan settlements
Post by: Pete on February 21, 2010, 14:32:21 PM
Anyone know how accurate this is? http://www.financecalcs.co.uk/Calcs/Settlement.php

I put some figures in and it comes out about £300 less than the cost of the full loan if I settle early, does that sound right?
Title: Re:Early loan settlements
Post by: DEViANCE on February 21, 2010, 16:20:07 PM
Sounds about right, nearly all loans have the interest paid off first and very very little of the balance is paid off until the very end.

Then with early settlement fees and things added on the final amount is very often almost the same as the amount borrowed in the first place, Ive been stung by this a few times.
Title: Re:Early loan settlements
Post by: Bacon on February 22, 2010, 04:01:31 AM
There was a good guide on MSE showing some loans that dont have high early settlement fees
Title: Re:Early loan settlements
Post by: Walrusbonzo on February 22, 2010, 07:56:20 AM
At ZOPA (http://www.zopa.com/member/Walrusbonzo) there are no early resettlement fees. ;-)

Title: Re:Early loan settlements
Post by: Pete on February 22, 2010, 20:46:34 PM
Cool, I just checked the paperwork and it gives figures for 1/4, 1/2 and 3/4 way through the loan.