| It might happen that you are
able to repay your loans earlier than you anticipated in such a way that deviates
from your initial repayment schedule. If this is the case you will need to ask
your lender for an early settlement statement, which will outline the amount of
money that you will need to repay the lender to finish your contract. You will
not usually have to pay back all the interest that you would have should you have
stuck to your original repayment schedule, but you will usually have to pay some
surplus charges on your loan. Some loan companies will levy an early repayment
penalty if you repay your loan before you were expected to. Others might ask you
to pay a small additional fee, say one month's interest on top of what you already
owe. It is important to find out your lender's policy on early repayment before
you agree to a loan, so that you are fully aware of exactly what would happen
in such circumstances. Loan settlements are calculated by rules set out by the
Consumer Credit Act of 1974.
Learn more about UK loans and how to get the right quote.
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