Post by blender on Oct 11, 2014 13:04:08 GMT
Hi James,
You may find that the discrepancy is in the roundings to whole pennies, especially if you have your loans broken into a number of smaller parts. FC work to a higher resolution and when paying the interest they accumulate roundings for each part until the payment of an extra penny is triggered (see FAQs). So some of the cash which should have been paid is held by FC, and of course if you have a number of £20 parts for the same loan at fixed interest these fractions per loan part will move up in step and can be a considerable number of pennies if you have a considerable number of £20 loan parts.
The fees are smaller that the interest, so of less importance, but I seem to think it works the other way round, ie they take the penny first and credit the loan part with the overpayments as roundings - though I cannot be sure of that - just that some of the first fees have been a penny more that I expected.
Maybe your spreadsheet does not take account of the breakdown of your loans into parts and FC's rounding practice? If not you can have hours more fun incorporating that, if you can find out exactly how FC handles the roundings. (Then you can tell us)
You may find that the discrepancy is in the roundings to whole pennies, especially if you have your loans broken into a number of smaller parts. FC work to a higher resolution and when paying the interest they accumulate roundings for each part until the payment of an extra penny is triggered (see FAQs). So some of the cash which should have been paid is held by FC, and of course if you have a number of £20 parts for the same loan at fixed interest these fractions per loan part will move up in step and can be a considerable number of pennies if you have a considerable number of £20 loan parts.
The fees are smaller that the interest, so of less importance, but I seem to think it works the other way round, ie they take the penny first and credit the loan part with the overpayments as roundings - though I cannot be sure of that - just that some of the first fees have been a penny more that I expected.
Maybe your spreadsheet does not take account of the breakdown of your loans into parts and FC's rounding practice? If not you can have hours more fun incorporating that, if you can find out exactly how FC handles the roundings. (Then you can tell us)
