interest calculation after early repayment

briktopp

Hello

I'm.concerned about overpaying interest on a personal loan. I borrowed 14950 on 13 Oct 2014 at 9% for 5 years. Total to repay was about 18500 at 309 a month. I have ended up making 7 normal payments plus 2 overpayments of 1000 and recently got offered a better loan deal at 3.7% so overpaid an additional 11000.. In total I have paid £15163. The statement shows 472 interest applied. My problem is they still want another £744!!! To settle which I think is too much. I know the only penalty for early repayment is 30 days extra interest.

Am I going mad?

Caz3121

Of your 7 normal payments - approx £750 was interest and around £1,420 came off the loan amount
so you have paid £1,420+£1,000+£1,000+£11,000 = £14,420 off the loan amount which seems to tally with the £744 still required
30 days interest would not be as much as £472 though