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Settle Your Loan Early Penalty Free and Make Overpayments and Pay Less Interest


LoanOnYourCar.com is the UK’s leading Logbook Loan Lender. Our priority is to provide you with a flexible lending solution to meet your requirements and to allow you to settle the loan early, penalty-free and make overpayments and pay less interest.

We calculate your interest the fairer way

The first thing to consider is that LoanOnYourCar.com calculates your interest using the fairer and cheaper ‘Flat Rate’ model as opposed to the expensive ‘Front Loaded’ model used by other Logbook Loan Lenders.


Fixed Rate

Fixed Rate is the percentage of interest calculated based on the original amount borrowed and the cost of interest remains the same across each month and year of the repayment period.

Flat interest rates have the following advantages:

  • Easy to calculate and track
  • Require no calculations to blend the loan principal and interest into a level payment - as long as the repayments are made on time, the original principal is repaid evenly over the term period.

It is regarded as the fairer model for calculating and paying interest every month on reducing outstanding balance.


Front Loaded

Front-loading of interest is more common than we might think. It's used by many Logbook Loan Lenders, providers of personal loans, car finance, mortgages. It is generally preferred by lenders as it generates more interest.

Most of the interest you owe is front-loaded, meaning that the vast amount of the cash you pay is for interest and relatively little is toward repaying the balance. Towards the end of the loan term, the opposite is true, and most of your payment will go toward the principal balance with little interest repaid

We Encourage you to Settle Early

LoanOnYourCar.com is committed to treating you fairly and we encourage you to settle your loan early at any time during the term, penalty-free, so you will save money on the interest repayments.

You can request an updated settlement figure at any time. To repay your loan early, simply contact our Accounts team. You will receive the settlement figure amount the same day and that will be valid for 28 days.

The Good News – If you settle the loan early, you will only pay interest for the time you had the loan, including the 28 days’ notice period. The interest will stop immediately when the settlement figure amount is repaid, and you will NOT be liable for the remaining interest.

This is not the case with other Logbook Loans Lenders that may offer front loaded and high rates of interest, a minimum 3-month loan period and shorter loan terms, which can often increase monthly repayments.

And don’t forget, many Logbook Loan Lenders will often impose fees for settling up the loan and early redemption penalties if the borrower wants to settle early!


Make Overpayments and Pay Less Interest

You can make unlimited number of capital over payments. On receipt of a capital overpayment, we will reduce the original loan principle by this amount and then re-calculate your new loan repayments commencing from the next repayments due date.

You are able to make overpayment by calling our expert Collection Team to make a direct payment by bank transfer. The team will instantly advise you of your new monthly repayment and adjust your Continuous Payment Authority [CPA ].

Apply now for an instant decision in principle

1. Enter your vehicle registration online and we will call you back within 1 hour* to complete your loan application;

or

2. Call us on 0333 577 5000 and speak to one of our expert loan consultants. We can offer advice on rates, repayments and our terms and conditions.



Representative Example:

If you borrow £1,000 over 36 months at a flat rate of 84% per annum [fixed] with a Representative 204.2% APR you will make 36 monthly payments of £97.98, making a total amount repayable of £3,660.00 including £30.00 document fee and £20.00 Option To Purchase fee. The total charge for credit is £2.660.00. Loan repayment length from 18 to 60 months. The maximum APR is 232.1%.

Your loan is secured against the vehicle and missing payments could put the car at risk of repossession.