How is the APR on the Seniors Money Lifeloan calculated

SGWidow said:

Thanks for all the explanations, Duke.

I've used up my quota of questions.

Accordingly, can I seek a final indulgence please?

Can you show the CCA APR calcs please? I just want to try to understand why a 365/366/36X days basis for calculating the cost of credit has seemingly no relevance to the official APR calc.

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It has relevance. But the APR is calculated to give the equivalent annual return Someone charging 5% on a 360 day basis will have a higher APR than someone charging 5% on a 365 day basis. That is the point, the APR is designed to put them on the same annual basis.

Thank God! That's what I was saying in post 16 (that the interest rate basis is relevant) - I guess stuff got lost in translation.

I have been on to Spry Finance and they explain that

“On the published APR, one of your posters added a spreadsheet which we looked at which is very close.

The roll up amount we get on the example loan is slightly higher than the poster’s such that when you apply the actual fees of €1,500 and €100 you get to the 5.82% APR as the poster showed how to calculate. We do an actual day to day roll up with end of month capitalisation out to 15 years. There is no double counting of the valuation fee as some posters seem to suggest. For all our customers they get a bespoke APR based on the specifics of their loan (e.g. expected loan start date, loan amount).”

Fair play to you, Brendan, for following up.

Do you understand/agree with the explanation as it makes no sense to me?!

Hi SG

It seems to me that you are arguing about the number of angels which can fit on a pinhead. I have not studied your argument or the response.

Brendan

Hi Brendan,

I don't think there is any need for that tone.

The reason for my question was because their response really makes no sense whatsoever.

FWIW, they are not disagreeing with me - they are disagreeing with themselves and Duke of Marmalade's calcs. I do not believe that DOM made errors in his calcs. If he did, can you show me where please?

SGWidow said:

I don't think there is any need for that tone.

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There is no tone.

I am just simply saying that you and the Duke are entitled to enjoy your discussion of an issue of almost zero relevance. To help you, I sent a note of your comments to Seniors and they replied. I am sorry now that I did. I don't want to be distracted from real issues.

I spend my time on actually talking about the product on the Joe Duffy Show and then lodging a complaint to the programme about the manner in which it was covered.

Brendan