Fixed Term Loan, But Interest?

A question about : Fixed Term Loan, But Interest?

Hi

I Need some advise please.

I took out a Co-Op loan for Ј8000 at 12.1% APR, which work out to be with interest added Ј11.692, over a period of 7 years.

I pay a monthly charge of Ј139.16, which calculate to Ј11.692 with interest.

But here is the problem, every 6 months the Co-op add interest to the loan of about Ј320 in 2014, and then again in 2015 January of Ј273. but the loan is supposed to be a Fix Long term loan and my monthly payment should have the interest covered which was agreed on when I took the loan out at 12.1% APR,

Can anyone here tell me why are the Co-op are charging interest every 6 months on a loan that should be fixed?

Best answers:

• Does your statement show any monthly interest too?
• Interest is not fixed sum every month so your 11.692 would not be the same each month .
  I think you have incorrectly assumed how your monthly payment is divided up.
  it shouldn't matter if they apply interest monthly or 6 monthly, you still repay the same overall figure