Quote Originally Posted by RMJH View Post
Under the original fee structure, early repayment hurt. Not so much now but there is still a re-investment lag. Just to confirm. Your figures represent the average age at which early repaid loans were repaid rather than average loan life? I think that must be the case.
Yes, those old loans hurts as early repayment attract a 1.25% fee on the amount repaid.

Currently, early repayments does hurt us if the loan has PP. As we have to pay the whole PP sales commission to HM. That is why some of our outstanding principals for fully paid loans are negative (meaning we owe HM money) instead of zero.