apples24

iTrader: (1)

ok wifes car needs changing, a complete and utter bargain damaged car came my way estimate 3k ish maybe a little more to buy and repair so we borrow 3k from lloyds as her car should sell for 3k, so i figure ill spend a few weeks sorting it out then sell hers [ay off loan was told if pay off early charge is outstanding amount plus 56 days interest

cracking i thought happy days i can pay a couple pyments and when her car sells clear it


daunting though just crossed my mind they dont mean the total amount ie the paperwork say total payment was not far off 4k or something?? yes thats after 3 years of payments, just thought id ask im having a moment lol

pimmo2000

iTrader: (6)

In a most cases no, but you need to read the T&C's. Most banks have an early payment charge, but again it depends on the bank and loan.

apples24

iTrader: (1)

oh ok i dont mind end up paying a small fee even if i pay back 3400 inc a couple months payments, i did have a oh **** moment tho lol, go a massive profit in the other car anyway just dont want to get spanked my fault of i do i spose for not reading the fine print lol

boomer

Check whether a "cooling off" period applies?

You may be able to cancel the loan (within 21 days?) and just pay the interest for the duration!

So read your small print carefully (things may not be too late).

mb

gpssti4

iTrader: (6)

It's likely that if you close the loan early there will be 60 days interest to pay (or 30 or 90), it'll be in the small print.

The Zohan

Bridging loan???

apples24

iTrader: (1)

i honestly dont mind paying some extra back i was a no brainer to be honest just at that time i had no spare cash i just had to buy the car. her saab cabrio should sell for min 3k i hope so it will vertually cover it ad we will prob have 4k profit in the new one

EddScott

I think most banks will let you give it back without issue within 14 days.

After that its up to what the T&Cs say about how many months interest you will have to pay.

IMO, get a credit card now with 0% and one that allows cash transfers without charging you cash fees (some still do - MBNA I think still do) move the cash from the card to your bank, give the bank the loan money back and you've probably now got about a year at 0% to pay off the balance.

Should end up being an interest free loan of you can get shot ASAP. I did this with our kitchen. All in was £5K, borrowed, paid, transferred and paying off the card over 2 years at 0%. Just DON'T use the card for anything else!

Gear Head

iTrader: (2)

You interest calculated when you took out the loan was over the entire term. That is why the £3000 loan will end up costing close to £4000 with interest. If you pay it back early, you won't be paying this interest. They will just minus off what you have paid so far, plus two months of interest.

Hope that makes sense.

apples24

iTrader: (1)

thats fine thankyou all

Pjamie

Chances are you WILL end up paying the interest if you pay it back early. As said earlier, most loans have early re-payment penalties. The bank makes its money via the interest charged so if you pay early you will need to pay a fair whack of that interest. Wouldn't be surprised if it's something like 80% of the total interest if paid within the first year. So get loan, sell car, pay loan back 3 months after taking it out, and maybe pay £800 of the interest plus your 3 repayments. Just let it run its course if the early re-payment charge is high, or re-pay it when the early re-payment charge is lower.

Gear Head

iTrader: (2)

Thats not usually how it works. Say your payment is £125 a month and £25 of that is the interest. A early repayment fee of two months interest will be £50 plus the outstanding amount (minus term interest).

PaulC72

apples24 - LloydsTSB loan: 14 days to change your mind 30 days to pay the money back
If you pay off thefull loan early then you will pay early repayment, however the best thing to do is pay it all off except one payment which you need to let come out as arrange via your DD, if you do this your early repayment charge will not happy you will just pay the interest due.

Hopefully this is clear but if you need any further informaiton let me know, this way you ca save a little money (not much on 3k but still some )

Littleted

Visa buy the car, Transfer to Intrest free for 12 months Rinse and repeat