Is it possible to change my loan amount and does this effect how much interest i will pay on the loan overall or how does it work?
E.g. I’m currently paying 300 for the next 3 years, if i chsnge to (for example) 800 and get the loan paid in the next 12 months or so will this decrease the amoint of interest i will pay overall?
I’m aware i can top up my loan any time i want but would prefer to be able to change the automatic amount and see that reflected on the loan screen along with how much interest/time on the loan i have left
Only manual overpayments.
These will decrease the interest owed over the time, as interest is accrued daily (but total cost given at time of taking out the loan for transparency).
Is that easy and do-able in app?
Otherwise put the extra £500 in a interest gaining pot, then pay it all off at the end of the year.
Ok thanks, anyone have any experience requesting through support channels for the automatic payment amount to be increased?
You can’t, it’s not possible.
You’ll almost certainly save more in un-charged interest on your loan than you would make in earned interest in a savings pot.
I don’t believe that there’s any way to permanently change your loan terms, though if you contact chat in-app, or email help@ then they will be able to give you a full answer on that.
But yes, to your original question - the interest is calculated daily on the outstanding balance at that time, so if you pay off a few hundred extra, even as a one-off, then you’ll pay less interest from then onwards, and the loan will be fully settled as soon as the banance hits zero, even if you get there much earlier than you originally planned.
You can’t change the amount but you can make an overpayment at any time with no penalty, so you can just repay extra each month.
As the post above says it would be far better to make a manual overpayment each month than to put the money in a pot, which is frankly terrible financial advice
@scarty if you pay early it will significantly decrease the amount of interest you pay.
You can calculate it here but you are likely to save close to £1k on a loan that size by doubling payments
Depends, he might have got the loan at 4%