loan with barclays

[ste v]

i pay £190 a month for my barclays loan but when i look at the balance online my loan amount remaining only goes down appx £85 a month ??? can anyone tell me why ??? thanks

[sara3]

interest? insurance policy? loan fees added?

[Buenchico]

With many types of loans (including mortgages) interest is calculated monthly on the outstanding balance (and then added to that balance). So in the early stages of repayment, each payment is largely eaten up by interest charges, with very little reduction in the capital owed. As you get further into the repayment period the monthly interest will be lower, so your payments will pay off more of the capital.

Chris