It depends on the lender and the loan.

Obviously with a credit card or an overdraft you can vary the repayments almost as much as you want each month but neither of these are suitable for long term finance.

To get an answer to your question, you will need to ask a few lenders and ensure that what you are wanting to do is included in the personal loan agreement. The best personal loans are quite flexible, the worst will calculate the settlement figure by simply adding up all the payments that you'd otherwise make.

Hi all,

I am looking to loan £6000 very soon. I intend to borrow over 4 years. I am buying a car and the sale of my own is taking longer than I hoped. I aim to borrow the £6000, pay for the car, then begin paying back the loan as standard. The thing is, when I do sell my own car, I want to pay this lump sum off the loan, and then settle the remainder over the subsequent few months (as quickly as possible).

So my question is: is this allowed, and if so, does the lender charge you for doing this, as you are effectively reducing the amount of money they make in interest, by paying the loan back within say 6–12 months.??

Thanks a lot.