Interest not added to agreement

kererra

I took out a loan over 5 years some 3 years ago for home improvements on asking for a clearing figure it was some £3,000 more than I expected.

the loan was for £11,000 which is on the agreement however when you add up the 60 payments its for roughly £14000 this total is not on the agreement. I know we should have checked this out at the time I thought that the total amount including interest should have been on our agreement without us having to physically working it out ourselves.

jonesMUFCforever

It would depend on whether the loan has fixed interest or is on a variable rate.

Can you also please tell us how you calculated the settlement figure?
Rememeber there is a lot more interest at the beginning of a loan that there is later on.

kererra

On checking the agreement I have found that the rate may be variable.
I have just read that the company may vary the interest rate or number of monthly payments. We were told that the rate was fixed at the time of signing. Also on the copy we have it has Interest rate "blank" % per month APR 7.9% but on the photocopy sent to us Interest rate .636% per month APR 7.9%

At the top Total Cash price £11884
Amount of credit £11884
60 monthly installments of £238.86

I was given the clearing figure by the finance company

Original agreement signed at home.