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Calculating Interest Charges

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  • 26-05-2009 7:44pm
    #1
    Altreab
    Registered Users Posts: 667 ✭✭✭


    Hello all
    I took out a bank loan a few years ago at a varible rate. The inital payments fixed payments have continued since. None missed. However with interest rates going up there have been extra debits to account for the higher rates. I have also speeded up the repayment process by making additional lump sum payments at different times. My gut feeling is that the extra payments been debited are high :( However i am open to correction on that :)
    My question is ...Is there any software that i can download to calculate the actual interest repayments that were due allowing for higher interest rates and extra repayments on the loan?
    Thanks in advance


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    #2
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    Surely rates should have gone down not up?
    If the rates changed did the bank not tell you the new repayment or alter the Diect Debit . They would have to do that I am sure?


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    #3
    Altreab
    Registered Users Posts: 667 ✭✭✭Altreab


    Ogham wrote: »
    Surely rates should have gone down not up?
    If the rates changed did the bank not tell you the new repayment or alter the Diect Debit . They would have to do that I am sure?

    I have had the loan for a few years now. Loan rates went up initally and are now around what they were. The loan was been paid by a fixed debit each month. However when the rates went up there was an additional direct debits to pay the extra interest charges.
    What im trying to figure out is how much exactly the extra debits should have cost.
    To be clear im not saying any incorrect amounts were taken i just want to be doubly sure the amounts are correct :)


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    #4
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Altreab wrote: »
    The loan was been paid by a fixed debit each month. However when the rates went up there was an additional direct debits to pay the extra interest charges.

    That sounds like a peculiar way to pay the loan back. Usually when I've had a variable rate loan, the payments remain the same for the term of the loan, but there might be an extra payment to be made at the end because of extra interest. Can you ask your bank for an interest rate history?

    I'm assuming it was a personal loan and not a mortgage or something?


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    #5
    Altreab
    Registered Users Posts: 667 ✭✭✭Altreab


    Toots* wrote: »
    That sounds like a peculiar way to pay the loan back. Usually when I've had a variable rate loan, the payments remain the same for the term of the loan, but there might be an extra payment to be made at the end because of extra interest. Can you ask your bank for an interest rate history?

    I'm assuming it was a personal loan and not a mortgage or something?

    Yes i thought so too. I am at present getting the branch to give me a break down of when and why they charged the extra interest. And most importantly how they calculated it.
    Will be picking up a written statement from them as to the dates of the interest changes and what it changed too.
    I will be able to do the calculations manually but software would be so much handier :)


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    #6
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Which bank is the loan with? I'm not aware of any software that'll do this for you I'm afraid :(


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    #7
    Altreab
    Registered Users Posts: 667 ✭✭✭Altreab


    Toots* wrote: »
    Which bank is the loan with? I'm not aware of any software that'll do this for you I'm afraid :(

    Bank Of Ireland.


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    #8
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Ok that really sounds like something weird going on there. I work for them and I've never heard of a loan being set up for repayment like that. :confused: What sort of loan was it? Was it business or personal?


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    #9
    ferga_com
    Closed Accounts Posts: 159 ✭✭ferga_com


    The only calculator that I use for loan calculations is Karl Jeacle's but I think your calculations are more complex. If you really want to pursue this, there are some professional firms who audit bank charges and interest, e.g. Bank Check but you may not be planning to take it that far.


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