That does sound expensive.

What was the total loan? When was it taken out? What is the total period of the loan? What is your monthly repayment?

Yes, interest on the skipped month makes total sense and I would expect it to be accrued across the rest of the life of the loan.

I would expect the first payment for the skipped month and the second for the interest accrued, but from what you're saying that sounds like the £183.

Could it be that payment holidays accrue interest at double the usual rate or something like that and that the member of staff was just really bad at explaining it?

I think a clearer explanation from Lloyds would help you and do bear in mind, they are not known for putting the customer first...

Today i have called my bank for a 1 month payment holiday to cover an unexpected bill.

I was told that it was possible but i would have to make 2 payments after the loan was due to finish - WHICH I KNEW ANYWAY.

The first was the payments that i had missed - MAKES SENSE

The second was too cover the interest for the 2 Months which was extending totalling £366 which is more than the normal installment.

The lady advised me that the interest was £183 for the month i am skipping and £183 for the month after the original maturity date.

Maybe i am confused but when i took out the loan i was told the interest was NOT "front loaded" added in total at the start, so the amout of interest each month/year would decrease as it was being charged on a smaller balance.

As the interest is being charged at the same amount how can this be as the balance at the end of the loan will be £16k+ lower but the interest is the same amount.

Does that mean that it is front loaded and i have been miss advised when i took out the loan, or is it calculated differently for payment holidays.

SOMEBODY PLEASE EXPLAIN !!!!!!