Bank Loan Last Payment

[bibblebub]

I have just 2 payments left to make on a 7-year bank loan (huzzah) but, looking at the details online, the amount left on the loan is about £100 less than the sum of 2 regular payments.

The amount due to be paid this month is the usual figure so does this mean that the very last payment will be £100 less than each of the previous 83 payments or will interest accrued during the last year be added to make it the same amount as all the others?

I suspect the latter but it would be nice to find myself unexpectedly better off next month. In a couple of weeks I'll find out anyway once this month's payment has been made but hope that someone might be able to tell me what will happen.

Thanks.

[Psybbo]

Can't help but glad you're getting to the end.

[bibblebub]

thanks, psybs, £60 per week better off is an exciting prospect

[Peter Pedant]

OK a longish question for a little bear

You owe £175 and are paying £100 a month - so they will take £100 the second last payment and then take £75 lastly

the interest will be added according to the contract - and yes some loan contracts stipulate interest is calculated on a daily basis - esp the ones where you can overpay the debt

[bibblebub]

A short answer - thanks.

To look through the small print or to wait a couple of weeks to find out? The wait seems most likely to happen...

[Peter Pedant]

a few years ago - the banks I am sure you will believe
used to calculate interest yearly....

incredible I know

so if the accrual date were 1 Jan and you over paid thousands in June and July ( or Feb ) then nothing would happen until Jan 1 the next year.

I dont think any deal does that now ....