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Close a loan
Close a live loan when it has been repaid, refinanced, or the property has been sold. Enter the redemption figures from the lender, say whether the money left your bank, and record what happened to the security. Remaining expected payments are cancelled. The payment history is kept.
1. Choose a reason
Close loan is on the loan header while the loan is active.
In the app
- Finance
- Loans & Mortgages
- Close loan
- Repaid is a redemption you have paid off.
- Refinanced is a remortgage onto a new loan.
- Property sold is a redemption on sale.
- Other covers a closure the first three reasons do not describe.
2. Redemption amounts
Enter the redemption date, the principal repaid, interest to redemption, and any exit or early repayment fees. The total is principal plus interest plus fees. Principal defaults to the current contractual principal.
- If the principal repaid differs from Rent Logger’s principal, record the missing payment or correct the starting position first. See When a payment is due.
- Attach the redemption statement under Security & documents.
3. Posting and the new loan
Say whether the redemption left the connected bank account. If it did, and Xero is ready, you can post it. If it was paid by a solicitor, from a sale, or netted against a new loan, nothing is sent to Xero and the loan is marked for the accountant.
- Post the redemption to Xero as Spend Money posts principal, interest, and fees on separate lines. You still match it to the bank feed.
- The Xero liability account is kept. You or your accountant can archive a dedicated account in Xero once it shows a zero balance. On the replacement loan, the old balance can be transferred into the new liability account. See Xero liability account.
- For Refinanced, Replacement loan links another loan on the same portfolio.
- Security records whether the charge is Released, Awaiting release, Not applicable, or Not known.