Help needed - loan settlement query

RainbowRising

Hi I'm after some advice.

I have a loan with Idem (was picture) which I took out July 2006. It was for £21500 and over 13 years. I received my annual statement which showed I have 3 years remaining and an outstanding balance of £9153.35 with the APR of 9.592% As this loan is secured on my home I really want to get this paid off however when I requested a settlement figure they have sent me the following:
Total remaining loan amount £9242.35
Legal and Discharge Fee £ 150.00
Total amount payable £9392.35

I rang to query this as I thought I may have been entitled to an early settlement rebate and I have been advised that as the loan was guaranteed against my home the interest is calculated monthly therefore is not deducted from the loan amount as it hasn't yet been added.

I'm a bit confused and just wondered if anyone could (a) let me know if that is right and (b) explain it to me in plain English.

Thanks - Ellie

Nearlyold

The outstanding balance is the amount you currently owe as at the statement date, not the amount you would pay in total if you continued to pay for the next three years - any interest which would arise in the next 3 years has not yet been charged to your account so naturally can't be rebated. If you pay the loan off now you will save on the interest you otherwise would have paid if you kept the loan running for the remaining 3 years

RainbowRising

Thanks for your input - all so confusing. Wish I'd been more switched on when I was younger.

elsien

brahim.2d wrote: »

Thanks for your input

3 posts so far saying thank you on random threads.
If you're building your post count ready to spam, then don't bother.