Early Settlement Figure calculator

Henry58

Apologies from a newbie if this has been asked before.

I've been quoted an early settlement figure (ESF) by Sainsburys Bank which seems to be excessive to me. I've found a calculator online (I think US based) and done my own calculation (allowing for 2 months interest), each which give a figure of around £200 less than I'm being quoted.

Also when I rang the representative couldn't tell me how much I owe today (ie without the two months interest), only the settlement figure.

Is there an online calculator which I can use to get a good estimate of ESF? Or can anyone shine a light as to why it is so high?

[Deleted User]

Henry58 wrote: »

Or can anyone shine a light as to why it is so high?

Perhaps, but we'd need some numbers.

Henry58

Original loan amount:£10,000 over 48 months @ 5.9% APR

15 payments of £233.69 have been made. No holiday at start of loan, missed payments etc.

Quoted settlement £7415.80, I get it closer to £7200

[Deleted User]

Their figure seems about right, if you use one of the calculators (example attached), once you add on another couple of month's interest.

http://www.theguardian.com/money/interactive/2013/oct/09/loan-repayment-calculator-overpaying-save-money

Henry58

Deleted_User wrote: »

Their figure seems about right, if you use one of the calculators (example attached), once you add on another couple of month's interest.

This must be the method Sainsburys are using. I agree with the figures they get for interest accumulated so far, but then I can't get my head round the following (using the above calculator's figures):

Initial loan: £10000
Accumulated interest: £603.80
Payments made so far : £3515.88

Then surely the amount remaining on loan (before any penalties for early settlement) would be 10,000 + 603.80 - 3515.88 = £7087.88 ?

Where does the £7,322.32 come from?

I must be missing something obvious ...

Henry58

To follow up my post. The discrepancy (despite what I was originally told on the phone) was that when quoting settlement figures no payments within the last 10 days are included. My calculation was correct and I have since switched my loan.

Deleted_User wrote: »

Their figure seems about right, if you use one of the calculators (example attached), once you add on another couple of month's interest.

This calculator is clearly wrong. Try putting in 1 payment made. According to the calculator this means you haven't paid a penny off either the loan or the interest.