Natwest loan repayment increase

hign10pines

I have a loan with Natwest, details below:

Length = 60 months
Amount = 5500
Monthly repayment = 148.71
APR = 20.8%

So I've been paying the 148.71 per month without fail. A few months ago I wanted to see what extra payments would do. For the 1st two month I received a letter (now can't find) detailing amounts paid, balance, repayment amount etc.

July
Payment 1 148.71
Payment 2 5
Interest -87.30

August
Payment 1 148.71
Part interest -5.08
Payment 2 20.55
Interest -85.73

September
Payment 1 148.71
Part interest -5.74
Refund 5.74
Interest -78.59

October
Payment 1 173.71 (I decided to just do one slightly bigger payment each month.)

Now I've asked for and received an amortisation table and my monthly repayment has increased to 186.89. I have no idea why this has happened.

Have I messed things up by doing extra payments or do I just know nothing about loans?

DebtFreeDuo

I know when I made overpayments on my loan I had to phone them up to do it as they have to change either the term or the payment amounts once you make the overpayment. I think you will need to phone them up and ask them why your payment has changed. Is the term different on the table?

hign10pines

DebtFreeDuo wrote: »

I know when I made overpayments on my loan I had to phone them up to do it as they have to change either the term or the payment amounts once you make the overpayment. I think you will need to phone them up and ask them why your payment has changed. Is the term different on the table?

It has always been 60 months.

lewishardwick

Check your T&C's. S mentioned above something has to change. You can't just over pay on most personal loans at the rate, monthly amount and term are fixed for clarity.

Herzlos

I'd assume that if anything, the term would shorten. You'll need to phone them and ask what's going on as the monthly payments shouldn't be going up unless somehow the balance or APR has.

Nearlyold

Did you just make the extra payments or did you tell Nat West that you wanted to pay extra before making the additional payments. Ad hoc extra payments are sometimes treated as payments on account towards the following months standard payment.

feekerry

You can’t just randomly make over payments to a Nat west loan. You need to speak to them first and they will give you a quote to make your overpayment and you get the choice of reducing term and keeping payments same or keeping term same and reducing payments