We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Evolution Money
Customer Enquiries 0161 814 9158
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue

What to do if you plan on repaying your loan early.

Can I repay a homeowner loan early?

Secured Loans > Our Loans > Homeowner Loans > Can I repay a homeowner loan early?

If your circumstances change, you might consider repaying your loan earlier than planned. 

Homeowner loans can have lengthy repayment terms. As many people choose to spread the cost over 10 years or more, a homeowner loan is usually a long-term commitment.

We explore whether you can repay your homeowner loan sooner than planned.

Can I repay my homeowner loan earlier than planned? 

During the loan application process, you’ll agree to make monthly repayments for a certain length of time. With homeowner loans, this could vary from between 1 to 20 years – or even more. However, in many cases, you can agree with your lender to repay the loan sooner than you agreed.

Many lenders charge fees for repaying a loan early. These are often called Early Repayment Charges (ERCs) and will differ from lender to lender.

At Evolution Money, it’s simple to repay your loan earlier than planned. As our ERC is based on just two of your standard interest payments.

What are the benefits of paying a loan earlier? 

Repaying your loan earlier can often help you save money. If you choose to pay your loan off earlier, this means that you’ll have less interest to pay overall. This could help you save money in spite of any ERCs – though it’s always important to check this is the case.

Many people choose to repay a loan for more financial breathing space. If you have enough money available to repay a loan in full, it can help you free up your finances going forward. As you’ll no longer be tied to your repayments, you’ll benefit from having that extra disposable income each month.

Are there any negatives to repaying a loan early? 

One of the main downsides to repaying a loan early is the ERCs. Early repayment charges are an additional cost on top of your loan repayment, which you might not have factored into your plans.

It’s important to compare the cost of the charges against the money you’ll save in total to see what’s best for you. For homeowner loans with high interest rates, an ERC could be a small price to pay.

How soon could I repay my homeowner loan? 

Depending on your lender, how soon you can repay your loan will differ. Typically, the earlier you choose to repay the loan, the more money you stand to save overall. However, depending on your lender, this could mean more expensive upfront ERCs.

If you’re faced with costly ERCs and your loan is naturally coming to an end soon, repaying your loan early might not be worth it. It all depends on the charges involved and whether the overall savings are worth it for you.

How can I repay a homeowner loan early? 

Many people decide to repay their loan early if their financial situation changes for the better. No matter whether you’ve remortgaged, or you’ve secured a lower interest rate, there are many ways your circumstances can change overnight.

At Evolution Money, it’s simple to repay your homeowner loan early. Simply contact us once you have the available money and we’ll provide you with the details on your settlement costs.

Fuss-free early repayment with Evolution Money  

We know that life can change at the drop of a hat. That’s why we aim to be flexible when it comes to early repayment. To find out more about our Evolution Money loans, get in touch with our friendly advisors – or see if you’re eligible for a loan with our quick and simple application process.

Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoWe are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code.

Socialise

Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
Manchester,
M1 3BE


Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

Complaints:
0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 9 Portland Street, Manchester, M1 3BE. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.


© 2021 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice | Sitemap
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution