My wife (before we were married) took out a car loan in 2004 for €12,000 over 5 years. She tends to neglect financial matters but after a year of nagging I have got her to get me a statement. I assumed it was fixed interest loan as the monthly payments have remained unchanged since inception (she can't find the original loan agreement, but has asked for a copy). On receipt of the copy loan statements last week, it appears it is a variable interest loan (the rate obviously having increased significantly over the last two years). BOI have not however increased the repayments, I asked my wife to call them to ask them to increase the repayments accordingly to bring the loan back to the agreed term of 5 years. BOI have told her that they will not do this as it alters the terms of the loan. Is this correct? If it is she will paying the loan over a longer term and paying interest (on the interest). I would assume that this loan should work like a mortgage i.e. interest rates go up, repayment goes up!