Can I pay off a loan early?

Can you pay off a loan early? Yes, if you can afford to. The benefit of this is that it can help save you money on interest repayments in the long run.

However, you need to be aware that paying off a loan earlier than expected may mean you have to pay an early repayment charge (or something similar).

How much this charge is, and how it works varies from lender to lender, but you might find it’s approximately the equivalent to one or two months’ loan interest. So, before you make your decision, check with your lender what the terms of your loan are before you pay off the loan entirely.