HSBC loan repayments

vernon198610

Hi Guys,

I'm after some impartial advice regarding a loan I have with HSBC. I am looking to repay early but the final settlement fee doesn't seem right to me.

The original loan amount taken out in November 2015 was £15000 at a very high APR of 16%
Total repayable over 5 years - £21720
Monthly repayments of £362 per month.

So far I have paid back £7964 (22 months @ £362)

When I spoke to HSBC yesterday they told me that the final settlement fee would be £11800.

So effectively of the £7964 I have paid so far, £4764 has gone on paying interest.

Does that sound right? I had noted that the settlement fee should have been around £9800.

hope someone can give me some advice.

Thanks

Peter

[Deleted User]

Sounds about right.

Remember interest is much higher in the early stages of the loan, plus the two months early settlement interest.

HogMan

If you have access to Excel there is a useful Loan comparison calculator template. Putting your numbers through would indicate the settlement figure is about right.