Paying off a loan early - penalties?


P

paulfoel

If I wanted to pay off a loan early what are the 'normal' sort of
penalties that a lender will apply? (Yes, I know it depends on the
lender).

Any idea what Northern Rock do?
 
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R

Rob graham

paulfoel said:
If I wanted to pay off a loan early what are the 'normal' sort of
penalties that a lender will apply? (Yes, I know it depends on the
lender).

Any idea what Northern Rock do?
If you have a Northern Rock mortgage surely the easiest and most accurate
way of knowing in your particular case is to ring them up and ask them. They
won't kill you. They may even offer you something better if they sniff that
you might move away.

Rob Graham
 
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Ronald Raygun

paulfoel said:
If I wanted to pay off a loan early what are the 'normal' sort of
penalties that a lender will apply? (Yes, I know it depends on the
lender).

Any idea what Northern Rock do?
Depends what kind of loan it is. If it's a mortgage, the terms are
likely to be very clear and well known to the borrower who can be
bothered to read the paperwork. Typically, if it's not a discounted
interest rate deal, it's likely to be penalty-free. Otherwise,
typically 6 months' interest on the amount repaid.

If it's a personal loan, typically with a 12 to 60 month term, the
penalty is likely to be 1 or 2 months' interest, computed according
to the rule of 78.
 

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