Top Loans You Can Pay Off Early
The trouble with loans is that should you come in to some money and want to pay it off early, you’ll more than likely be charged for the privilege by the lender!
Lenders are more flexible when it comes to providing loans - such as allowing payment holidays (because they get more interest out of you!). However, finding one who will give you a great deal as well as the option to repay your loan off early, penalty-free is very difficult.
Most lenders are now taking advantage of the new law that allows new loans to have a charge of up to two months' interest if you wish to pay off the borrowing early.
However, there are some friendly lenders out there. One is Northern Rock who allows overpayments and an early repayment without charging you a fee. Northern Rock also provides the Eskimo loans brand which offers the same benefits.
The rates are competitive too.
A loan from Virgin Money won’t charge you early repayment penalties also, but allows just one lump-sum overpayment in a twelve-month period. However, again, their rates are competitive.
Another place to try is Zopa. Zopa is a borrowing and lending exchange where you borrow from other people as opposed to banks. It allows free-free overpayments and early redemption.
Finally, you could try a credit union. These are also ethical like Zopa and while they won't charge you for early repayment, you may not be allowed to make lump-sum overpayments.