Nationwide loan offer

lindsayw_3

Am busy scratching my head over this
Nationwide have offered a £10,000 loan over 48 months, repayments are £273, quoted APR 14.9. When I looked again, the total amount repayable is £13,109, which wont add up in my thick head!!
Am i being conned?
Help!!

Joe_Bloggs

What is the margin between your calculation and Nationwide's calculation ?
J_B.

lindsayw_3

My calculation is as follows
Loan - 10,000
Quoted APR - 14.9%
Interest = 1490
Total - 11490
Over 48 months = 239.37.

Their figures are
Loan - 10,000
Quoted APR - 14.9%
Interest - 3109
Total 13109
Over 48 months = 273

Am i being particularly thick here?

nomoneytoday

It looks correct to me. £273 x 48 is £13104, so I guess there are a few pence on top. The interest is about 7.75% flat a year, but as you don't pay interest on paid balances the APR looks about right.

What was your query or calculation?

alistair1234

lindsayw wrote: »

My calculation is as follows
Loan - 10,000
Quoted APR - 14.9%
Interest = 1490
Total - 11490
Over 48 months = 239.37.

Their figures are
Loan - 10,000
Quoted APR - 14.9%
Interest - 3109
Total 13109
Over 48 months = 273

Am i being particularly thick here?

Your calculation is not APR it is just an interest rate, APR is done on an annual basis taking in to account repayments made already.

Basically you have worked out 14.9% for 4 years, but in fact you pay 14.9% per year, but the interest go's down each year because you are paying more and more off the balance.

lindsayw_3

Ah ha.....i see now
Maybe not such a good offer on reflection then
Back to scouring the internet
Thanks to everyone who replied

L