Early repayment of variable rate loan

kapisko1PL

Hello,

As per the terms and conditions of the loan agreement I have the right to repay the loan in full earlier than its last payment date.

How can this be done? I cannot seem to find anything in the terms and conditions as to how this can be done. What is the official procedure for this?

Thanks

Assuming you've online banking - Just transfer the money off the loan, is the quickest and easiest way (they'll likely still charge you the next payment, but then refund it a day or two later, minus any interest that was due).

Or ring them up and get an "all-in" price to clear it, including any interest owed.

Bank of Ireland Reps

kapisko1PL wrote: »

Hello,

As per the terms and conditions of the loan agreement I have the right to repay the loan in full earlier than its last payment date.

How can this be done? I cannot seem to find anything in the terms and conditions as to how this can be done. What is the official procedure for this?

Thanks

Hi There,

Thanks for getting in touch with us here today. You can certainly complete the payment online using Banking 365 online. However prior to making a payment to the account we would recommend that you contact our customer service team directly on 0818 365 365 or 00353 1 4044000 if abroad to obtain a closing balance of the loan as interest is acrued daily and the closing balance today could differ to that of tomorrow. 

Once you have obtained the closing balance we would recommend that you complete the final payment before close of business the same day.

We hope this helps.

Thanks Jen

AndyBoBandy

Bank of Ireland Reps wrote: »

Hi There,

Thanks for getting in touch with us here today. You can certainly complete the payment online using Banking 365 online. However prior to making a payment to the account we would recommend that you contact our customer service team directly on 0818 365 365 or 00353 1 4044000 if abroad to obtain a closing balance of the loan as interest is acrued daily and the closing balance today could differ to that of tomorrow. 

Once you have obtained the closing balance we would recommend that you complete the final payment before close of business the same day.

We hope this helps.

Thanks Jen

I'm in this very same situation, and have paid off a term loan this morning.

Will the direct debits stop now automatically?, with the exception of any closing interest balance? or do I also need to call to calculate the closing balance? and make an additional final payment?

3DataModem

I did it last year.

BOI did everything automatically after I made the relevant transfer, but the next standing order did get debited. 

If there is an overpayment and the loan goes into credit, the loan will automatically be closed and the overpayment refunded to the standing order / direct debit account that was used to clear the loan (if BOI). 

You'll get a closing statement in the post. 

AndyBoBandy

3DataModem wrote: »

I did it last year.

BOI did everything automatically after I made the relevant transfer, but the next standing order did get debited. 

If there is an overpayment and the loan goes into credit, the loan will automatically be closed and the overpayment refunded to the standing order / direct debit account that was used to clear the loan (if BOI). 

You'll get a closing statement in the post. 

Sounds ok then, The interest won't be more than €15, so I can just lodge €20 into the account, which will stop the next debit, and clear remaining interest, refunding the balance back to my account...

Bank of Ireland Reps

AndyBoBandy wrote: »

Bank of Ireland Reps wrote: »

Hi There,

Thanks for getting in touch with us here today. You can certainly complete the payment online using Banking 365 online. However prior to making a payment to the account we would recommend that you contact our customer service team directly on 0818 365 365 or 00353 1 4044000 if abroad to obtain a closing balance of the loan as interest is acrued daily and the closing balance today could differ to that of tomorrow. 

Once you have obtained the closing balance we would recommend that you complete the final payment before close of business the same day.

We hope this helps.

Thanks Jen

I'm in this very same situation, and have paid off a term loan this morning.

Will the direct debits stop now automatically?, with the exception of any closing interest balance? or do I also need to call to calculate the closing balance? and make an additional final payment?

Hi There,

Thanks for getting in touch with us here. We always recommend that customers obtain the closing balance for the loan prior to making a final payment on the account. This is to ensure that the interest is covered on closure and to ensure no further payments are required. We hope this helps.

Thanks Jen