natasha2106 Posted February 3, 2009 Share Posted February 3, 2009 After long chats with oh, we have decided to put our rekkie on hold to oz and the money we were putting away every month to save for the trip we have decided to pay it off our loan instead so that in approx 9-10 months we will have paid the loan off and then have twice as much to save a month so would put us in a better financial position, also if husband loses his job at least my wage would pay the mortgage and wouldnt have to worry about the loan aswell. Anyway just rang barclays and asked if we can reduce the term 21 months left and pay double a month to pay it off earlier. They have said NO!! They said they cannot offer a reduced term cause they won;t let me have a new loan i said i don't want another loan i want to pay this one off asap, but apparently they have to apply for a new loan to clear the old loan with the lower terms!!!!! How frustrating I hate banks they are just greedy - they said save the money yourself and when you have enough to clear the whole loan you can repay the loan in one go but they will charge penalty for clearing the loan early and then charge me one months interest on top!!!!!!! Can u believe it, they make more money off my interest each month, more than I would earn from interest on the savings. Sorry for the rant just want to sort things out and the bank just wont budge... Tasha:arghh: Link to comment Share on other sites More sharing options...
Guest Burness2Oz Posted February 3, 2009 Share Posted February 3, 2009 Hi Tasha, I work for a Building Society who's rules are the same, because it is a fixed term loan agreement the terms cannot be changed the only difference where I work is that you would not be penalized for repaying early with any charges or additional interest that sounds rubbish. It sounds harse but they are guided by the FSA regulations which are VERY strict. Good luck Link to comment Share on other sites More sharing options...
anlopa Posted February 3, 2009 Share Posted February 3, 2009 I'm doing the same as you but have just swapped the loan to an egg flexible loan which allows extra payments and to pay off early. we are selling both cars and getting two bangers to run untill we leave. The interest rate is the same as the old loan but with the flexible option. You would think banks would encourage you to give them the money back. With the amount of people not wishing to clear their mind befor leaving (if you know what I mean) the banks are daft. Link to comment Share on other sites More sharing options...
kernow43 Posted February 3, 2009 Share Posted February 3, 2009 After long chats with oh, we have decided to put our rekkie on hold to oz and the money we were putting away every month to save for the trip we have decided to pay it off our loan instead so that in approx 9-10 months we will have paid the loan off and then have twice as much to save a month so would put us in a better financial position, also if husband loses his job at least my wage would pay the mortgage and wouldnt have to worry about the loan aswell.Anyway just rang barclays and asked if we can reduce the term 21 months left and pay double a month to pay it off earlier. They have said NO!! They said they cannot offer a reduced term cause they won;t let me have a new loan i said i don't want another loan i want to pay this one off asap, but apparently they have to apply for a new loan to clear the old loan with the lower terms!!!!! How frustrating I hate banks they are just greedy - they said save the money yourself and when you have enough to clear the whole loan you can repay the loan in one go but they will charge penalty for clearing the loan early and then charge me one months interest on top!!!!!!! Can u believe it, they make more money off my interest each month, more than I would earn from interest on the savings. Sorry for the rant just want to sort things out and the bank just wont budge... Tasha:arghh: the saying is "All banks are bastards" Link to comment Share on other sites More sharing options...
rach28 Posted February 3, 2009 Share Posted February 3, 2009 how about open a new account and change your loan direst debit to go out of it, then just put the extra money into this acct. Once you have enougth money in the acct to pay off loan just leave the acct alone and just let the bank take it each month. Rachael Link to comment Share on other sites More sharing options...
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