Settlement figure going up instead of down... why?!

Pinzy

I've got a loan with Northern Rock, originally for £8300 in June 2007.
I'm looking to change it, because at the mo', I'll be paying back £17625.

I phoned up for a settlement figure in December, and was told it would be £8501.23.
I've just phoned up again for a settlement figure, and was quoted £8542.85

I asked why the settlement figure had gone up instead of down, and was told that because previously I'd asked just after a payment date, whereas now I'm phoning before the next payment date. Although I've made 1 payment in the interim.

Does anybody know why my settlement figure would be going up? Or does it whiff of pilchard?

BenL

Each day that passes the amount will go up due to daily interest.

7 months into the loan you are likely to be paying mostly interest each month so for instance a £200 repayment may take £180 in interest and £20 capital repayment.

On payment date your balance goes down by £200 then as the month goes by the accruing interest brings the amount owing back up again.

I believe NR to be correct with the response they have provided.

Pinzy

Oh thank you, that makes far more sense!