We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
AA Loan - Overpayment Returned
darkcloudi
Posts: 580 Forumite
in Loans
I took out a loan for 11000 over 3 years at a rate of 6.6% which was to end in October 07.
I have completed this agreement 9 months sooner then the agreed date however they have calculated that I have made an overpayment of £27 as I had paid it of early. Is this correct? Interest charged over the duration of the loan was just over £1300 which more or less works out to be just over £400 a year. The amount that was returned is quite low, not sure if this would be correct.
I have completed this agreement 9 months sooner then the agreed date however they have calculated that I have made an overpayment of £27 as I had paid it of early. Is this correct? Interest charged over the duration of the loan was just over £1300 which more or less works out to be just over £400 a year. The amount that was returned is quite low, not sure if this would be correct.
0
Comments
-
The interest isn't £400 a year flat, it reduces over the term, so the likely amount in the final year is a lot less than £400.
There may also be penalties for early settlement, so the £27 isn't necessarily the wrong amount.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.6K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards