Final figure

[T9UPS]

Hello,

I will be in my final year from 27/04 , my last review is due then , if I wanted to make a full settlement once they have calculated my new payment would I just times my payments by 12 to get a final settlement figure ? I heard that they will ask for more Than that

[luluj]

The normal calculation would be monthly payment x months left, plus any equity release you are expected to provide in your final year.

[Foggy]

As luluj intimates, it will depend on whwther you are a homeowner as to whether you have equity release to deal with. If you do a further 12 months payments is usually added for a full and final.

Also be wary of terminology: "Settlement" is generally taken as meaning paying the balance of the full original debt, plus fees and possible statutory interest. What you are talking about id a "Full and Fina Offer", which is, as luluj explained, based on remaining payments.

Even offering the full amount is sometimes rejected by creditors, for reasons I cannot fathom, so it is by no means guaranteed. It also takes a few months to get set up, so leaving it until the last year is sometimes just too late to be worthwhile for either party and creditors will see the fees increased by around £500, which will eat into their return.