Euribor Loan - Is correct Interest being applied by Bank?

M

MPH

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Looking through Interest Rate & Repayment Notifications from bank on a loan I took out in 2002 and noticed something odd. Can this be right?

Commercial Loan 1 Month Euribor + 1.25%

6th March 2003
Interest Rate 3.874%
Monthly Repayment Eur3772.71

6th January 2008
Interest Rate 3.793%
Monthly Repayment Eur 3804.01

The monthly rate is now 0.081% lower yet the monthly repayment is Eur31 odd higher than in March 2003?

Almost 3 years on having made both capital and interest payments should monthly repayment amount not be lower than that in March 2003?

Before I write to them, am I missing something obvious/stupid??
 
You seem to assume that the interest rate has decreased in a straight line over 5 years, by 0.081%. If the interest rate had been higher in that time, more interest would have accrued, thus increasing the amount owed/left to be paid.

But you should contact the lender anyway.
 
Looking back over the loan when 1 month euribor went up the interest part of the repayment increased to reflect this.
I'm looking at the two monthly repayment amounts used below in isolation and knowing the rate has fluctuated over the period am asking, if the interest rate now is lower than it was in March 2003 and the capital amount outstanding is also less now how is it that the monthly repayment could be higher? Has the lender made a mistake or am I wrong in my calculations?
 
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