Originally Posted by
aearose
I looked at the link provided for the loan, and it states an Interest rate of 4.99%. Which works out at £1254 per month, £15058 a year. This is £3058 short of the Bond repayment. Is this right?
The £109,000 bond gets paid back over 9 years, this is taxed at a low rate so you can expect approximately £108,000 back - this is how they have calculated the £12,000 per year/£1,000 per month.
Paying back your loan of £109,000 (plus considerable interest) you are inevitably going to be paying more back on the loan than you are receiving through the security bond each month. Hopefully that makes sense!