Unhappy with loan early repayment figure

ringo110879

Hello everyone.

I have a query regarding an early repayment figure provided to me by Tesco Bank.

Loan amount £11000 repaid over 60 months with a 3 month payment holiday at the beginning.
4% apr

Opening balance of £12243.60 including interest.

Early repayment fee of £47.76 (2 months interest)

First repayment made of £243.60 then a further 20 repayments of £204.60 have been made.
They have provided me with a settlement figure of £7505.08 which by my calculations is approx £300 higher than it should be. The adviser couldn't explain to me how the figure was calculated other than saying they use a FSCS calculator of which I cannot find to verify the amount.

I have done my calculations and removed the interest from the remaining balance of £7958.54 which to me comes down to £7150.
Plus the early repayment fee of £47.76 and the figure should be £7197.76.


She did say that they front load the interest according to the T&C's but even so the figure seems too high.

Could any of you on here take a look at this figure for me and see if I am working it out correctly. I am reluctant to pay a the figure when they can't seem to explain to me where it has been derived from.

Thanks for any comments.

Mark

Trying_to_be_good

Their figures look about right to be - start balance £11k, after four months at 4% interest that's grown to £11,147.40 (assuming full months), one payment of £243.60 and 20 of £204.60 leaves a balance of £7,469.71 plus the ERC.

Trying_to_be_good

Payment
Month Interest Payment £11,000.00
-3 £36.67 £- £11,036.67
-2 £36.79 £- £11,073.46
-1 £36.91 £- £11,110.37
0 £37.03 £- £11,147.40
1 £37.16 £243.60 £10,940.96
2 £36.47 £204.60 £10,772.83
3 £35.91 £204.60 £10,604.14
4 £35.35 £204.60 £10,434.89
5 £34.78 £204.60 £10,265.07
6 £34.22 £204.60 £10,094.69
7 £33.65 £204.60 £9,923.73
8 £33.08 £204.60 £9,752.21
9 £32.51 £204.60 £9,580.12
10 £31.93 £204.60 £9,407.46
11 £31.36 £204.60 £9,234.21
12 £30.78 £204.60 £9,060.39
13 £30.20 £204.60 £8,886.00
14 £29.62 £204.60 £8,711.02
15 £29.04 £204.60 £8,535.45
16 £28.45 £204.60 £8,359.30
17 £27.86 £204.60 £8,182.57
18 £27.28 £204.60 £8,005.24
19 £26.68 £204.60 £7,827.33
20 £26.09 £204.60 £7,648.82
21 £25.50 £204.60 £7,469.71

Nearlyold

I think the OP figures are different because they have mistakenly assumed that interest is evenly spread throughout the term where as it is actually charged on the monthly balance as "Trying to be good's" post perfectly illustrates.

antrobus

ringo110879 wrote: »

....I have done my calculations and removed the interest from the remaining balance of £7958.54 which to me comes down to £7150. Plus the early repayment fee of £47.76 and the figure should be £7197.76.

Try here. £7.5k looks about right.

http://www.financecalcs.co.uk/smartcalcs/Settlement.php

ringo110879

Thanks very much. I appreciate you taking the time to reply