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NRAM Unsecured Loan - Dodgy Payments ???

gavman99
gavman99 Posts: 50 Forumite
My wife and I had a Together mortgage product from Northern Rock which got moved to NRAM a couple of years ago. The Together mortgage meant we had a secured and an unsecured element to our mortgage. Two weeks ago we sold our old house but we only redeemed the secured element of our product. NRAM allow this but said that our interest rate would increase by 5% from the one we were paying before which was 4.79%.

They sent me a letter advising that my new monthly payment would be £163.35pm. However I just called them and they advised that my new monthly payment would be £190.17pm. I told them thats a lot higher than they advised previously so she had a look and said she'd get the monthly figure changed.

I then asked for all the figures on the unsecured loan and she confirmed that our outstanding balance is £15,462.08, our interest rate is 9.79% and we have 190 monthly payments remaining.

What I don't understand is that whenever I plug these figures into any online calculator, they all say that my monthly payment should be £160.40 as opposed to the £163.35 that NRAM are quoting me.

Can anyone explain why there might be a legitimate difference ?

Thanks in advance.
Gavin.

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Is 9.79% an APR or is the monthly rate one twelfth of this with interest added monthly and then seeing interest charged on interest? Which would mean a slightly higher APR.
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