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Lending company loan calculations...

Infoplease123
Posts: 3 Newbie

in Loans
Hi there, using the MSE loan calculator £10125.00 loan over 5 years at 6% is £195.00 per month.
When inquiring at high street loan companies they quote a figure of £219.00 per month for the same amount over 5 years at 6%
When I point out that a fixed rate of 6% should be £195.00 per month they say, thats the figure their computer gives them but they cant explain why!
Are they slipping compound interest though the back door?
When inquiring at high street loan companies they quote a figure of £219.00 per month for the same amount over 5 years at 6%
When I point out that a fixed rate of 6% should be £195.00 per month they say, thats the figure their computer gives them but they cant explain why!
Are they slipping compound interest though the back door?
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Comments
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What high street loan companies are you referring to?0
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Infoplease123 said:Hi there, using the MSE loan calculator £10125.00 loan over 5 years at 6% is £195.00 per month.
When inquiring at high street loan companies they quote a figure of £219.00 per month for the same amount over 5 years at 6%
When I point out that a fixed rate of 6% should be £195.00 per month they say, thats the figure their computer gives them but they cant explain why!
Are they slipping compound interest though the back door?0 -
Chris_English said:Infoplease123 said:Hi there, using the MSE loan calculator £10125.00 loan over 5 years at 6% is £195.00 per month.
When inquiring at high street loan companies they quote a figure of £219.00 per month for the same amount over 5 years at 6%
When I point out that a fixed rate of 6% should be £195.00 per month they say, thats the figure their computer gives them but they cant explain why!
Are they slipping compound interest though the back door?0 -
porkisnotmeat said:Chris_English said:Infoplease123 said:Hi there, using the MSE loan calculator £10125.00 loan over 5 years at 6% is £195.00 per month.
When inquiring at high street loan companies they quote a figure of £219.00 per month for the same amount over 5 years at 6%
When I point out that a fixed rate of 6% should be £195.00 per month they say, thats the figure their computer gives them but they cant explain why!
Are they slipping compound interest though the back door?
Simple interest is very easy to calculate. You borrow £10,125, and the interest is £10,125*0.06*5=£3,037.50
Total amount repayable = £10,125+£3,037.50 = £13,162.50
Divide that by 60 monthly payments and you get £13,162.50/60 = £219.375 per month.
You seem perhaps to be working out the payments at an APR of 6%, then trying to claim that that’s what you should be paying at an APR of 6%0 -
Chris_English said:porkisnotmeat said:Chris_English said:Infoplease123 said:Hi there, using the MSE loan calculator £10125.00 loan over 5 years at 6% is £195.00 per month.
When inquiring at high street loan companies they quote a figure of £219.00 per month for the same amount over 5 years at 6%
When I point out that a fixed rate of 6% should be £195.00 per month they say, thats the figure their computer gives them but they cant explain why!
Are they slipping compound interest though the back door?
Simple interest is very easy to calculate. You borrow £10,125, and the interest is £10,125*0.06*5=£3,037.50
Total amount repayable = £10,125+£3,037.50 = £13,162.50
Divide that by 60 monthly payments and you get £13,162.50/60 = £219.375 per month.
You seem perhaps to be working out the payments at an APR of 6%, then trying to claim that that’s what you should be paying at an APR of 6%
Instead of going guns blazing the moment you detect what you think is someone disagreeing with you, it might be helpful to read what they wrote, digest it, and then write your reply.0 -
What is pork, if not meat?
The MSE calculator does indeed give £195 a month on £10125 over 5 years if you say the APR is 6% but I suspect you are seeing the interest rate as 6% but the APR is 12% or whatever0 -
porkisnotmeat said:Chris_English said:porkisnotmeat said:Chris_English said:Infoplease123 said:Hi there, using the MSE loan calculator £10125.00 loan over 5 years at 6% is £195.00 per month.
When inquiring at high street loan companies they quote a figure of £219.00 per month for the same amount over 5 years at 6%
When I point out that a fixed rate of 6% should be £195.00 per month they say, thats the figure their computer gives them but they cant explain why!
Are they slipping compound interest though the back door?
Simple interest is very easy to calculate. You borrow £10,125, and the interest is £10,125*0.06*5=£3,037.50
Total amount repayable = £10,125+£3,037.50 = £13,162.50
Divide that by 60 monthly payments and you get £13,162.50/60 = £219.375 per month.
You seem perhaps to be working out the payments at an APR of 6%, then trying to claim that that’s what you should be paying at an APR of 6%
Instead of going guns blazing the moment you detect what you think is someone disagreeing with you, it might be helpful to read what they wrote, digest it, and then write your reply.
There’s no shame in not understanding, but please try to tone down the indignation when someone politely tries to help you out with your numbers.
Edited to add, I just checked the loan calculator, and the numbers are spot-on. I’m virtually certain that you have put in an APR or 6% which, of course, is not the rate on the loan that you are looking at, which has an APR of around 12%0 -
Deleted_User said:What is pork, if not meat?
The MSE calculator does indeed give £195 a month on £10125 over 5 years if you say the APR is 6% but I suspect you are seeing the interest rate as 6% but the APR is 12% or whatever0 -
Goodness Guys, I didnt want to start a fight!
Thanks for the feedback. I'm not the best on working all this out but you have shed some light
on how loans are calculated.
Last time I got a loan it was with a bank and it was 3.9% which if calculated on the MSE calc
worked out to be the same figure as the banks.
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Infoplease123 said:Goodness Guys, I didnt want to start a fight!
Thanks for the feedback. I'm not the best on working all this out but you have shed some light
on how loans are calculated.
Last time I got a loan it was with a bank and it was 3.9% which if calculated on the MSE calc
worked out to be the same figure as the banks.
For exactly the same amount, payments, and term, the APR number’s generally around twice the flat rate, which is why some lenders will slyly quote you the flat rate, to make it sound cheaper.
APR includes interest and fees, so is the only one to use if you want to get a fair comparison.0
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