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Clearing loan early.

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  • 19-01-2007 8:23pm
    #1
    shayser
    Closed Accounts Posts: 1,650 ✭✭✭


    Thinking about using my SSIA to pay off a large personal loan early. Repayments are steep and the rate is hefty too so this make sense for me.

    Is there generally penalties for clearing a loan early? I think I remember a few years ago hearing that lenders could no longer penalise.

    Also, what is the situation with payment protection. This was part of the loan.

    Thanks.


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    #2
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    It depends. Was it a fixed rate or variable loan?

    If it's a fixed rate, the lender may charge you a fee for closing the loan early. Variable rate loans generally let you close early without a penalty. As for payment protection, an early closure to the loan means the bank will calcuate if any has been overpaid etc and factor that into your closing balance.


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    #3
    shayser
    Closed Accounts Posts: 1,650 ✭✭✭shayser


    It's a fixed rate. So what sort of fee are we talking about?


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    #4
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    It varies. Talk to your bank and they can do the calculations.


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    #5
    shayser
    Closed Accounts Posts: 1,650 ✭✭✭shayser


    Going in to the bank next week about this. The loan was for €37k. Balance is €20k. What should I expect? A few hundred... a few thousand...? Generally speaking, perhaps.


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    #6
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    *repeats last post*


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    #7
    shayser
    Closed Accounts Posts: 1,650 ✭✭✭shayser


    Hi there BuffyBot!! Thank you for repeating your last post.


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