Loan repayment break examples
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Loan repayment break examples
When requesting a repayment break for your loan, it's impotant that you understand the impact on your overall balance and your monthly payments.
The below table shows how a payment break of 6 months might change the cost of a loan based on a range of interest rates and the potential impact on the loan term.
- These are illustrative examples only, based on a sample of interest rates and remaining terms.
- The examples show the number of additional repayments required to repay your missed payments plus the additional interest. They assume that monthly payments continue as normal after a repayment break.
| Example 1 | Example 2 | Example 3 | |
|---|---|---|---|
| Current loan balance | £5,000 | £7,500 | £10,000 |
| Loan interest rate | 3.4% | 7.9% | 15.9% |
| Monthly payments left | 36 | 36 | 48 |
| Additional interest owed | £88.11 | £354.91 | £1,499.09 |
| Regular repayment amount | £146.29 | £234.68 | £282.90 |
| Final repayment amount | £88.08 | £120.10 | £83.99 |
| Extra monthly payments needed | 7 | 8 | 12 |