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Loans settlement query
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Batesy1976 said:paddysreturn said:foxy-stoat said:They dont refund interest already paid unless the add interest in advance. If your current balance is £5784 then their settlement figure of £5552 seems good to me.
Understood. However, without the interest my home made calculator and the online amortisation tool both have the outstanding balance at 5200 (mine says 5206 but very close). Therefore, which ever way I slice it - using the calculators or using the front loaded for display only, the settlement figure comes out approx 150 higher than I was expecting.0 -
paddysreturn said:Batesy1976 said:paddysreturn said:foxy-stoat said:They dont refund interest already paid unless the add interest in advance. If your current balance is £5784 then their settlement figure of £5552 seems good to me.
Understood. However, without the interest my home made calculator and the online amortisation tool both have the outstanding balance at 5200 (mine says 5206 but very close). Therefore, which ever way I slice it - using the calculators or using the front loaded for display only, the settlement figure comes out approx 150 higher than I was expecting.
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Batesy1976 said:paddysreturn said:Batesy1976 said:paddysreturn said:foxy-stoat said:They dont refund interest already paid unless the add interest in advance. If your current balance is £5784 then their settlement figure of £5552 seems good to me.
Understood. However, without the interest my home made calculator and the online amortisation tool both have the outstanding balance at 5200 (mine says 5206 but very close). Therefore, which ever way I slice it - using the calculators or using the front loaded for display only, the settlement figure comes out approx 150 higher than I was expecting.0 -
paddysreturn said:Any idea as to what I may be overlooking? With over a year left the interest rebate should be much higher but I can’t imagine a high street bank having an error in their figures.
On my calculator (11k, 16% 3 years £385.73) after 21 payments you'd have a balance of £5,226.23 left. Interest for that month would be £69.69. Plus another 2 months on top of that takes it to £5,435.30.
Obviously the number of days in each month and when you pay will alter the amounts and even a little alteration over 21 months will add up to quite a big difference.
It does seem unlikely that a high street banks computer systems would make an error, although it's possible that the people you speak to on the phone about it don't understand the algorithm that the computer uses. Personally I'd pay as much off as possible as soon as possible because for every day that you have the loan each pound is accruing interest.Debt Free: 01/01/2020
Mortgage: 11/09/20240 -
Jami74 said:paddysreturn said:Any idea as to what I may be overlooking? With over a year left the interest rebate should be much higher but I can’t imagine a high street bank having an error in their figures.
On my calculator (11k, 16% 3 years £385.73) after 21 payments you'd have a balance of £5,226.23 left. Interest for that month would be £69.69. Plus another 2 months on top of that takes it to £5,435.30.
Obviously the number of days in each month and when you pay will alter the amounts and even a little alteration over 21 months will add up to quite a big difference.
It does seem unlikely that a high street banks computer systems would make an error, although it's possible that the people you speak to on the phone about it don't understand the algorithm that the computer uses. Personally I'd pay as much off as possible as soon as possible because for every day that you have the loan each pound is accruing interest.
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