Fixed Term Loan, But Interest?

waynelee115

Hi

I Need some advise please.


I took out a Co-Op loan for £8000 at 12.1% APR, which work out to be with interest added £11.692, over a period of 7 years.

I pay a monthly charge of £139.16, which calculate to £11.692 with interest.

But here is the problem, every 6 months the Co-op add interest to the loan of about £320 in 2014, and then again in 2015 January of £273. but the loan is supposed to be a Fix Long term loan and my monthly payment should have the interest covered which was agreed on when I took the loan out at 12.1% APR,

Can anyone here tell me why are the Co-op are charging interest every 6 months on a loan that should be fixed?

DCFC79

waynelee115 wrote: »

Hi

I Need some advise please.


I took out a Co-Op loan for £8000 at 12.1% APR, which work out to be with interest added £11.692, over a period of 7 years.

I pay a monthly charge of £139.16, which calculate to £11.692 with interest.

But here is the problem, every 6 months the Co-op add interest to the loan of about £320 in 2014, and then again in 2015 January of £273. but the loan is supposed to be a Fix Long term loan and my monthly payment should have the interest covered which was agreed on when I took the loan out at 12.1% APR,

Can anyone here tell me why are the Co-op are charging interest every 6 months on a loan that should be fixed?

What does your contract say ?

jonesMUFCforever

Does your statement show any monthly interest too?

Apples2

Interest is not fixed sum every month so your 11.692 would not be the same each month .
I think you have incorrectly assumed how your monthly payment is divided up.

it shouldn't matter if they apply interest monthly or 6 monthly, you still repay the same overall figure