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Your Agreement

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Understanding your Finance Agreement

How are my repayments calculated?

When you take out a loan with Northridge, it’s a fixed sum, fixed term agreement. This means:

  • You borrow a set amount of money.
  • You agree to pay it back over a set period of time.
  • The interest you’ve to pay is worked out at the start and added to the amount you borrow.

Your monthly payments are then calculated based on the total amount, and they stay the same each month.

For example, if you borrow £10,000 over 3 years, and the interest is £1,520, your total opening balance would be £11,520. You’d pay £320 per month for 36 months.

If you’ve a Personal Contract Purchase agreement, there will be a final lump sum payment due at the end if you want to keep the car. This is called a Guaranteed Minimum Future Value or sometimes referred to as the balloon payment.

Do I get a refund of interest if I pay off my agreement early? 

If you decide to clear your agreement early, you’ll get a partial rebate of interest. This is where we give you back some of the interest we added at the start of your agreement. It’s calculated in line with the Consumer Credit (Early Settlement) Regulations 2004. The rebate amount reduces your outstanding balance meaning the amount needed to clear your agreement will be lower. You can find out how and where to clear your agreement here.

What’s an interest rebate?

This is where we give you back some of the interest we added at the start of your agreement. It’s calculated in line with the Consumer Credit (Early Settlement) Regulations 2004.

Why is my outstanding balance more than I expected?

Your outstanding balance is the amount you borrowed plus interest and any fees due for the length of the loan.

This means the total you see now may be higher than the original loan amount.

Making and Managing your Payments

When do I make my first repayment?

Your repayment date will be one month after your agreement start date. You find your agreement details in the Northridge App or Self-serve portal. You can find more on our App here. It’ll show you your payment date and how you can change this.

Still not sure? Just give our friendly Customer Service team a call on 0800 917 0931 — we’re happy to help.

Can I pay extra to reduce what I owe?

This is called a partial settlement. If you’ve extra money to pay but not enough to clear all the balance on your agreement.

You use it to either:

  • Pay less each month, or
  • Reduce the time left on your agreement and pay it off sooner. If you’ve a PCP agreement, overpayments can’t be used to reduce your final lump sum payment at the end. You can only use this to make your monthly payments lower.

There are no extra fees, and you might even save money on interest.

Just remember:

  • You can only do this with certain types of regulated finance (like Hire Purchase, Personal Contract Purchase or Personal Loan). You can check this on a copy of your agreement.

You can learn more and complete our overpayments form here. If you’re not sure how it works, just get in touch with our Customer Service team on 0800 917 0931 — we’re happy to help.

I’ve finished paying, but you took another payment – when will get it back?

If your agreement has been cleared (settled) and we’ve taken another payment, we’ll arrange a refund once that payment has cleared. This usually takes 7 to 10 working days.
You don’t need to do anything — but if you’d like to speak to us, our Customer Service team is happy to help on 0800 917 0931.

Why hasn’t my payment shown up on the Northridge App?

Don’t worry — payments can take 2–3 working days to appear in the App.

Still not showing? Give our Customer Service team a call on 0800 917 0931 — we’re happy to help.

Managing unexpected events

What happens if my car is stolen or in an accident?
  1. Call the police – Report the incident and get a reference number.
  2. Contact your insurer – Start a claim and provide them with the police details.
  3. Let Northridge know – Call us on 0800 917 0931 to inform us of the situation.
  4. Continue your monthly payments – Your agreement will continue until your insurance makes the payment.
What if my insurance payout doesn’t cover what I owe?

If your car is stolen or written off (badly damaged), your insurance company may give you money for it. But sometimes, that money isn’t enough to pay off the full amount you still owe on your car loan.

What you can do?

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