There is nothing to stop you repaying your loan before the end of the term and by doing this you could save hundreds of pounds in interest; however you need to be aware that most loan providers will charge you an early repayment penalty.

Under the terms of the Consumer Credit Act an early repayment penalty of one month’s interest is payable. This applies when the original term of the loan is more than one year and the advance is £25,000 or less. For terms of one year or less, no redemption penalty is payable. If you are refinancing your loan you should take this penalty into consideration in your calculations.