Is the average high street bank ameniable to the idea or is it a fight?

Some do and some don't. It's something I think you can try and agree on when you take out your loan.

Yes, that's when you'd want the interest rate to be agreed on for sure, but I was just wondering how negotiable the rate is.

It's always worth trying to negotiate your loan repayment terms and rate.

Sometimes lenders will be more than happy to negotiate a better rate - often they'll ask what you've been offered elsewhere, and if you can give a real figure, they may be happy to quote against it.

Not all do, though - I took out a loan for a car last year, and found my personal bank was happy to offer me a lower rate, possibly because they knew they could trust me to pay it back. However, other lenders I had no history with generally looked to simply quote a general figure.

You should also find out if it is worth it to swallow the fee if you can pay off your loan earlier if you can't negotiate it away. Paying a fee is worth it if you save even more on interest.

It's good to know that bargaining extends beyond just the car dealer. Many thanks!

Yes its amazing to see how far having the guts to try and bargain can take you in any situation

In my case with a recent home mortgage I just said, "This does come with no pre-payment penalties - right?"

"Oh, did you need it that way?"

(Startled personal expression)

"We can make it happen, Sir."

"Thank you."

I believe some states have a "no prepayment" law. Atleast I think so anyway. I know that we've paid off loans without any prepayment penalty. Our home equity loan will make us pay the origination fee if we pay off early, but it was only $167 so we weren't worried about it.

Just because it's law doesn't mean some lenders won't try to get by with doing it anyway. Know your rights and stand up for them. Oh, and always be willing to walk away from the table. If not, you really have no room for negotiation.

Lots of lenders are pretty happy to allow for room for negotiation - at present at least - so IMO it's a very good idea to ensure there's no early payment penalties negotiated into any such contract from the start. I can't see many lenders willing to push customers to other lenders simply on that account.

I had no idea you were charged a fee if you paid your loans off early. Is that for every type of loan or just certain ones. I didn't think I had to pay a fee when I paid my car off earlier, however, I didn't read the fine print. This really sucks. Can you talk to your lender after you have already gotten the loan?

Only some loans have early repayment fees - but is definitely something to ask about before taking one out.

Saved around $1000 recently by paying off a loan early - had taken it out for 3 years, but paid it off at the end of 1 year, simply to free up money for a mortgage.

I didn't actually need the loan at the time, but figured I'd use one to help build up my credit rating after a long spell of unemployment.

Oh drat! I never thought of this when I got my mortgage two years ago... I have every intention of paying it off early... very early, and I'm on schedule for that so far. What kind of fees are we talking here in case mine has the fees?

Worth asking your mortgage company about those - my existing one doesn't allow for more than 20% to be paid off in a single year without penalties - but I'm never going to be able to pay off as much as that.