Bank Loan/interest help.....

buckeejit · 14 Apr 2007 at 17:43

I currently have an £11,000 loan bank loan with HSBC which I have decided to take over 5yrs making the total repayable - £17700 (inc. insurance which is about £4,000). My first repayment is on 1st May 2007 which will be about £296. My question is, if I were to pay off this loan after just one payment, would I get a decent settlement.

HSBC told me that if I were to pay off my loan yesterday, I'd only have to pay £11,579.

I understand that you don't know the interest rate etc. and what way the bank works but I'm hoping you can give me some sort of rough idea as HSBC couldn't help me.

GreenMint · 14 Apr 2007 at 17:54

I've had 2 in the paste, HFC & Cahoot, when i paid them off, cahoot didn't charge any extra interest, accepted payment, closed account. HFC was i think £50-£100 costs.

Obviously these were not the first payment, had them for 2-3 years respectively, but all in all i wouldn't have called that a bad deal.

Likewise, your £11,579 while more than you borrowed (Gotta love em an dhate 'em) its not so bad, but in the end its down to what you feel is fair.

clv101 · 14 Apr 2007 at 18:14

You should be able to "end" a loan at any time, pay back all that is owed and not pay any further interest. Cahoot are nice as it's a totally flexible product, some other lenders aren't so flexible but the worst they will do is charge a fixed fee that won't be too much.

Noxis · 14 Apr 2007 at 18:19

You also have to consider your credit rating. I was told not that long ago that if you take loans and finish them early too many times it cant have a negative impact.

I had a £17k loan over 4 years and then paid it back inside about 14 months, I just obviously had to pay back the remaining amount + I think 3 or 6 months interest. That was with Halifax.