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Settle Early Penalty Free And Save Money is committed to treating its clients fairly. That is why we actively encourage you to settle your loan early, penalty-free, and, whenever possible, make overpayments to save money.

Flexibility in Early Loan Settlement: One of the advantages of our Logbook Loan is the flexibility it provides when it comes to settling your loan early. Unlike some financial institutions that impose penalties or charges for early repayment, we allow you to pay off your loan ahead of schedule without incurring any additional costs. This policy is designed to benefit you by potentially saving you money in the long run.

Requesting a Settlement Figure:
Should you decide to settle your loan early, you can easily obtain a settlement figure at any point during the loan term. This figure represents the total amount you would need to repay to clear your debt completely. Importantly, the settlement figure you receive will remain valid for a 28-day period, giving you ample time to make the necessary arrangements to clear your loan.

Interest Calculation for Early Settlement:
When you choose to settle your loan ahead of its originally agreed-upon term, you will only be responsible for paying interest for the duration that you held the loan, which includes the 28-day notice period. This means you won't be charged for the full term's worth of interest, which is a considerable advantage in terms of cost savings.

Immediate Interest Cessation:
The moment you pay the settlement figure, interest accumulation will cease immediately. This is a significant benefit, as it ensures that you won't continue to accrue interest on your loan balance after you've made the decision to settle it early. In other words, you'll only be paying interest up to the point when you clear your outstanding debt.

No Liability for Remaining Interest:
It's crucial to note that once you've settled your loan in full, you will not be held responsible for any remaining interest that might have accrued if the loan had run its full course. This means that you can confidently close your loan account, knowing that you won't have any future financial obligations related to interest payments.

Overpayments and Pay Less Interest:
You can make an unlimited number of capital overpayments. On receipt of a capital overpayment, we will reduce the original loan principal by this amount and then re-calculate your loan repayments, commencing from the next repayment due date.

In addition to our commitment to transparent lending, we employ the 'Flat Rate' interest calculation model, which is both fairer and more cost-effective compared to the 'Front Loaded' model utilised by other logbook loan providers.

Flat Rate: Under the flat rate system, the interest is calculated as a fixed percentage of the original loan amount. The key advantage here is that the cost of interest remains consistent throughout the entire repayment period, be it monthly or yearly. Flat interest rates offer several benefits:

  1. Ease of Calculation and Monitoring: They are straightforward to calculate and monitor, making it easier for borrowers to understand the interest costs.
  2. Consistent Repayments: There's no need to perform complex calculations to blend the loan principal and interest into a level payment. As long as payments are made on time, the original principal is repaid evenly over the loan term.
  3. Fairness: This model is considered fair because it ensures that interest is paid on a reduced outstanding balance every month, promoting a more equitable repayment structure.

Front Loaded: On the other hand, front-loading is a more commonly used approach, employed not only by logbook loan lenders but also by providers of personal loans, car finance, and mortgages. This method is generally preferred by lenders because it results in higher interest earnings.

Under the front-loaded model, most of the interest you owe is concentrated in the early stages of the loan. In essence, a significant portion of your initial payments primarily covers interest, with relatively little going toward reducing the principal balance. However, as you approach the end of the loan term, the payment structure reverses, and a more substantial portion of your payments is allocated to paying down the principal, with less going toward interest.

In summary,'s use of the flat rate interest calculation model offers you a more transparent and equitable approach to managing your loan. Unlike the front-loaded model, which front-loads interest payments, our method ensures that your interest costs remain consistent throughout the repayment period, contributing to a fairer and more manageable borrowing experience.

In summary, our loan terms are designed to provide you with maximum flexibility and cost-saving opportunities when it comes to early loan settlement or overpaying. We understand that financial situations can change, and we aim to make the process of paying off your loan ahead of schedule as straightforward and beneficial as possible.

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 £3,592.28 including £40.00 document fee and £25.00 Option To Purchase fee. The total charge for credit is £2,660.00. Logbook Loan repayment length from 18 to 60 months. The maximum APR is 389.1%.

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

Warning: Late repayment can cause you serious money problems. For help go to