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The great 'No redemption penalty' Ripoff?
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I have just settled a NR "no redemption fee" loan very early (one year into a 10 year loan) and I was a little confused by the settlement figure I was quoted.
The figures are loan £25000, interest 5.7% APR, monthly repayment £272.46, after 12 payments were made the settlement figure was £23414.74.
I have calculated it to be closer to £23080 using an excel spreadsheet to amortize the loan (although the interest rate calculated by the spreadsheet is 5.592% to get the correct monthly payment). Using another spreadsheet to calculate using the rule of 78 this gives me a figure of £23187.
Can anyone explain where NR have got their figure from?0
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