Payment Protection for a Loan
My wife and I took out a sizeble loan on a short term basis in order to fulfill the balance of 10% for the signing of contracts for a new house. (We had not closed on our original house)
The BOI mortgage adviser insisted that we had to sign up for the payment protection on this.
We have now paid back the loan 10 weeks after taking it out. We had always intended to do this when all deals were closed.
However I think we have been overcharged on two points
Full facts and figures:
Loan of 54,826k on APR of 7.9%
(50k lodged to our account. 4,826 was PP . 60 months agreement in 57 instalements - We never paid any instalements as we were going to clear loan before this was due.)
Payment protection fee of 4,826
Interest charged on loan = €802. PP included in this.
PP fee paid = €466.
However I think we have been overcharged on two points
1. The total interest charged on the loan has the payment protection sum included even though we never received this money. PP is a fee over the term of the loan (60 months). The interest on this in the region of €75.
2. Assuming that the PP protection sum is paid equally over the term of the loan we appear to have paid off 4 months extra (or €190) over what we should have paid.
Is this above practise correct? Any advice is welcome
My wife and I took out a sizeble loan on a short term basis in order to fulfill the balance of 10% for the signing of contracts for a new house. (We had not closed on our original house)
The BOI mortgage adviser insisted that we had to sign up for the payment protection on this.
We have now paid back the loan 10 weeks after taking it out. We had always intended to do this when all deals were closed.
However I think we have been overcharged on two points
Full facts and figures:
Loan of 54,826k on APR of 7.9%
(50k lodged to our account. 4,826 was PP . 60 months agreement in 57 instalements - We never paid any instalements as we were going to clear loan before this was due.)
Payment protection fee of 4,826
Interest charged on loan = €802. PP included in this.
PP fee paid = €466.
However I think we have been overcharged on two points
1. The total interest charged on the loan has the payment protection sum included even though we never received this money. PP is a fee over the term of the loan (60 months). The interest on this in the region of €75.
2. Assuming that the PP protection sum is paid equally over the term of the loan we appear to have paid off 4 months extra (or €190) over what we should have paid.
Is this above practise correct? Any advice is welcome