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Loan Figures not adding up
Afternoon
Im probably missing something obvious here, but whilst looking into reducing interest rates of various loans we have, I cant get my head around the repayments on one of them.
The statement says:
Amount of Credit: £5000
Agreement Date: 25th February 2020
Duration: 52 months
Fixed Rate 4.9000% per annum
Initial payment was £114.11
Monthly payments are £114.77
The drawdown was £5508.60
Is it just me, or should the monthly cost be around £106 ?
Looks to me like the duration should be 48 months & not the stated 52 ?
Thanks
Im probably missing something obvious here, but whilst looking into reducing interest rates of various loans we have, I cant get my head around the repayments on one of them.
The statement says:
Amount of Credit: £5000
Agreement Date: 25th February 2020
Duration: 52 months
Fixed Rate 4.9000% per annum
Initial payment was £114.11
Monthly payments are £114.77
The drawdown was £5508.60
Is it just me, or should the monthly cost be around £106 ?
Looks to me like the duration should be 48 months & not the stated 52 ?
Thanks
0
Comments
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What date did you make the first payment? Was it 25th March 2020 or a different date?Debt Free: 01/01/2020
Mortgage: 11/09/20240 -
Sounds as if initial repayments were deferred. What were the terms of the loan?0
-
4.9% is the flat rate, APR’s about 10%, so the payments seem correct.0
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The OP appears to be querying the 52 months of repayments @ £114. As this exceeds the total amount repayable on the loan.Chris_English said:4.9% is the flat rate, APR’s about 10%, so the payments seem correct.0 -
Thanks for the replies guys, Thrugelmir, almost bang on the money.
Had totally forgot about the COVID-19 - 3 month deferral.
Worrying that the customer service rep at the bank couldnt work it out either though.
Thanks guys
, actual term was 49 month. 0
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