Bank loan top other intrest fees question

stevejazzx

Ok I had a Loan of 5000 taken out in Jan 2006

I've just (2 weeks ago) taken out a new loan with same bank for 14000.

The 14000 will draw the remaining balance (4650) on my old loan out.

My question is since my new loan pays off the old one in full do I incur all the intrest of my old loan, or at least is that common pratice with banks?

Gillo

I depends on the T&C of the origional loan.

Theres one of 3 senerios;
1/ You aren't charged any more interest than that already occured
2/ You are charged a fee to pay off the loan earlier, this may be a set fee or a fe months interest
3/ You get charged the full amount of interest (I doubt this will happen)

Call the bank and ask them what the situation is.

stevejazzx

gillo wrote:

I depends on the T&C of the origional loan.

Theres one of 3 senerios;
1/ You aren't charged any more interest than that already occured
2/ You are charged a fee to pay off the loan earlier, this may be a set fee or a fe months interest
3/ You get charged the full amount of interest (I doubt this will happen)

Call the bank and ask them what the situation is.

Thats funny, I rang Ulster Bank O'Connell 3 times about this no one could tell me and noone has gotten back to me....

Hitchhiker's Guide to...

moved to investments/money forum - better suited there

conor_mc

Probably scenario 1 or 2 as gillo outlined them.

Basically, check your documentation. If it was a fixed-rate loan, expect to pay some sort of charge for paying up early. If it was a variable rate loan, there should be no charge (unless its clearly outlined in your loan agreement).