📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Loan Figures not adding up

Options
Gynx
Gynx Posts: 37 Forumite
Seventh Anniversary 10 Posts Combo Breaker
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


Comments

  • Jami74
    Jami74 Posts: 1,291 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    What date did you make the first payment? Was it 25th March 2020 or a different date?
    Debt Free: 01/01/2020
    Mortgage: 11/09/2024
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 29 January 2022 at 3:14PM
    Sounds as if initial repayments were deferred. What were the terms of the loan? 
  • 4.9% is the flat rate, APR’s about 10%, so the payments seem correct.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    4.9% is the flat rate, APR’s about 10%, so the payments seem correct.
    The OP appears to be querying the 52 months of repayments @ £114. As this exceeds the total amount repayable on the loan. 
  • Gynx
    Gynx Posts: 37 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    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.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 599K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.