Am I missing something obvious?

[Supernova190188]

Not sure if I’m being dull somehow, just messing with the extend loan term on Halifax out of interest and extending the loan for a short amount of time somehow costs me less even though the interest rate is the same? Not sure what I’m missing?
Current term remaining 45 months at 5.8%, total amount repayable £8397, if you extend term by 6 months the total amount repayable becomes £8322 and if you extend it by 1 month it becomes £8228

[JuanCarlosFandango]

In until someone cracks it.

I'm going to say it's a quirk of annual compounding but I can't quite work out how.

[HustleRussell]

Are you sure it's not just telling you how much the repayments are during a certain term rather than the whole outstanding amount?

For a while I was comparing for example 2-year mortgages by 'total amount payable in term', without noticing that some of the mortgages had a 29 month fix period. The 'total amount payable in term' was accurate but some of the mortgages had months to run after the 2-year term ended.

[bmwmike]

i'm interested in this too and initially considered that it might be a javascript/coding error on the website, in which case i wondered if it was legally binding but their T&C probably take into account such errors.

[pistonheadforum]

That's rather strange - more likely to be an issue with the website scripting than actually cheaper.

[pistonheadforum]

Thinking about it rationally - there is no way that borrowing money from a bank can result in you paying back less in interest.

Otherwise we would all be trying to borrow £1 million for 820 years unless there is some magical combination of money and time that results in no interest.

[iphonedyou]

pistonheadforum said:

Thinking about it rationally - there is no way that borrowing money from a bank can result in you paying back less in interest.

Otherwise we would all be trying to borrow £1 million for 820 years unless there is some magical combination of money and time that results in no interest.

He looks to be thinking about it rationally, insofar as he's querying it.

[Supernova190188]

I believe I’ve spotted why, it was because on the day I had a look the standing order had gone out my account to pay the loan, it was showing as an updated balance including the new payment on the loan balance however must not have taken the payment into consideration on the day it calculated it, the next day it was back to how it should have been where it costs more to extend the term at the same rate!