How do I get an early settlement figure?

2 min read

Request in writingFrom the lender

Exact to a dateValid for a short window

Includes any ERCAnd interest to date

Free to askNo commitment

What a settlement figure is

A settlement figure is the precise amount you must pay to clear the loan in full on a specified date. It is not the same as your outstanding balance — it is the balance plus interest accrued up to the settlement date, plus any early repayment charge or admin fee that applies. Because interest accrues daily, the figure is only valid to the date quoted and lapses after a short window.

How to request one

Simply ask the lender — by phone, portal or in writing — for a settlement figure as at a particular date. It is a routine request and should be free. Get it in writing so there is no dispute about the amount, and note the expiry date, because if you pay after it the figure will have moved. If you are settling from a specific inflow, time the request so the figure is live when your money arrives.

Checking it before you pay

When the figure arrives, check what it includes. Is there an early-repayment charge, and does it match your agreement? Is the interest calculated only to the settlement date, not beyond? On a reducing-balance loan the figure should be close to your outstanding balance; a figure far above it warrants a query. Once satisfied, pay the exact amount by the date quoted to close the account cleanly.

See the full process in settling in full early, and check your rough balance first on the repayment schedule.

Frequently asked questions

Does it cost anything to request a settlement figure?

Requesting the figure itself is normally free — it is a standard service. What the figure may include is a cost: any early repayment charge or admin fee set out in your agreement. Those are part of settling early, not a charge for the quote. Ask for the figure broken down so you can see the balance, interest and any charge separately.

How long is a settlement figure valid?

Only for a short window — often a matter of days — because interest accrues daily and the amount changes. The quote will state the date it is valid to. Pay by that date and the figure stands; pay later and you will need a fresh figure, as more interest will have accrued. Time your payment to land within the window.