Very confused about excessive loan amount charge, help please

wicked_witch_2

Hi guys, hope you are all well?

I have a question that if anyone can help with I would be really grateful.

I took out a secured loan a five years and I am now selling my house so have requested a settlement figure, this is where my confusion begins.

The original loan was for £32,000 with PPI (yes I know) took it to £37,000

Now the settlement figure states that the balance is £37,611.64
Interest addes is £444.61
Future charges are £61,493.49
Total £99,549.74
Less amount of rebate £58,684.37
Add redemption fee £200.00

Total amount of settlement figure £41,065.37

So, can I ask what are these future charges that have been added and why am I going to have to pay an additional £4000 on the original amount when I have been paying this loan for five years.

I have to admit to being very confused so any advice would be great.

Many thanks x

wicked_witch_2

Bump, anyone? x

wicked_witch_2

If anyone can help with this I would be very grateful.

petermb_2

Hi
I think the lender puts their finger up to the wind and comes up with an amount in their favour.
There may be something you can do about it though. There is certainly opportunities to reclaim all of the ppi premium back plus interest and probably a fair bit more depending on who arranged the loan for you.

scotsgirl_3

it looks like they basically do not take off the full amount of future interest ( that's what the future charges are, the interest that would be payable if you let the loan run to the end)

There way of wording it is slightly strange though ( especially as they have interest added showing seperately.)

Have you asked for a statement rather than just a settlement figure? It may make things a little clearer. Whilst I can just about understand the settlement figure being more than you borrowed, i'm surprised that the balance is I would expect your monthly payment to be more than the interest being added each month.

Have you checked to see if there are any other charges (late payments etc) that have been added on as this could be to blame.

wicked_witch_2

many thanks for your reply,

there are no late payment charges, everything is paid on time and up to date so really confued about the figure.

inmypocketnottheirs

Certainly get the PPI refunded.