Natwest Loan Help!!!!!!

craiga20uk

I had a loan from Natwest for £8000 back in October 2011, the repayment is £195 per month. So far, in 8 months I have only paid £746.34 off the total balance, and £817.10 in interest!!!!! I am getting charged £100+ per month in interest alone, For every £195 that I pay towards my loan, £100+ of that is interest, is it me being stupid, or does that equate to more than 50% interest??? I have sent a complaint into Natwest and asked them to detail how they calculate interest rates, this is meant to be a favourable rate aswell, as I pay a monthly fee for an advantage gold account. Has anyone got any advice? Or am I just being really stupid in not being able to calculate correctly, maths never was my strong point lol.

opinions4u

It would help if you posted rate and term of loan.

But a rate of around 15% would see interest charged at approximately £100 in month one.

£8000 x 15% = £1200. Divided by 12 months = £100.

This gradually reduces as the debt reduces.

is it me being stupid, or does that equate to more than 50% interest

Tempting. It means 50%+ of your payments to date have been interest. Not unusual on longer term loans and mortgages. As the debt reduces those proportions change.

It doesn't mean that you are being charged a rate of 50% plus.

craiga20uk

The loan was over 4 years, so wouldn't really class it as a "longer" term loan, and I can't remember the interest rate quoted, that's why i've contacted Natwest regarding this. It was all done online and I never received any paperwork through the post.

Apples2

Sounds like it was mis-sold...

stephane_2

If you are paying £195 per month over 4 years that give a total of £9360....so that is certainly not 50% interest....it sounds right to me.

stephane_2

Apples2 wrote: »

Sounds like it was mis-sold...

What has it got to do with mis-selling?

Apples2

stephane wrote: »

What has it got to do with mis-selling?

Bring back the sarcasm smiley!!

stephane_2

Nothing to do with sarcasm but before making such a statement you need to explain yourself

Wutang_2

stephane wrote: »

Nothing to do with sarcasm but before making such a statement you need to explain yourself

as do you. It was clearly missold, where is the 'whoosh' smiley?

Macca83_2

Your interest payments are higher at the start because the interest is calculated on a larger balance. As the capital is repaid, you'll find that your £195 Will begin to pay back more of the capital and less of the interest.

There are calculators online that Will show you month on month what percentage of your £195 Will go towards interest.

stephane_2

Wutang wrote: »

as do you. It was clearly missold, where is the 'whoosh' smiley?

Complete rubbish....