Right, I've put your figs into my spreadsheet and came up with the following:
Loan Amount £61,800.00
PPI Premium £15,134.82
Total Loan £76,934.82
Apr% 9.9
Monthly Int.% 0.825*
No. of Payments 180
No. of Years 15
Monthly Payment £804.12
Actual Costs (Over full term of loan)
Total True Cost £144,741.60 (Monthly payment x 180)
Total Interest 67,806.78 (True cost - Total loan)
Annual Int.% 9.9 (Not accurate, this should be monthly interest x 12, not APR)
Annual PPI Int. £1,498.35 (Interest x Annual Int%)
Total PPI Int. £22,475.21 (30%of total interest!)
Monthly PPI Int.
£124.86 * Please note that in the absence of the actual monthly interest figure (FP must have changed their agreement forms, as it is on mine from 2004), the monthly interest figure is just the APR dived by 12 - not accurate, but close enough to prove a point!
That point being FP are taking the
P*ss by reducing your monthly payment by £24!!
The actual amount of PPI interest you are paying out of your monthly payment of £804.12 is £124.86!!!
If you take the £2000 they have offered off the initial £15,134.82 for PPI, it does indeed reduce the monthly payment by c. £24, but you are still paying a huge amount of interest on the reduced PPI amount (£13,134.82). See below for what I mean - I have just taken £2k of the PPI Premium and reduced the monthly payment by £24......
Loan Amount £61,800.00
PPI Premium £13,134.82
Total Loan £74,934.82
Apr% 9.9
Monthly Int.% 0.825
No. of Payments 180
No. of Years 15
Monthly Payment £780.12
Actual Costs (Over full term of loan)
Total True Cost £140,421.60 (Monthly payment x 180)
Total Interest £65,486.78 (True cost - Total loan)
Annual Int.% 9.9 (Not accurate, this should be monthly interest x 12, not APR)
Annual PPI Int. £1,300.35 (Interest x Annual Int%)
Total PPI Int. £19,505.21 (33% of total interest!)
Monthly PPI Int.
£108.36
Sparkle is right they don't pro-rata the payments (again just another way of ripping us off!).
If you where not made fully aware of the cost implecations of adding the PPI as a single premium at the begining if the loan i.e none of this was explained to you, IMO you have a very good case for mis-selling and you should go for a
full refund of the PPI premium (not an insulting £2k) and all interest to date!!
Hope this makes things a bit clearer (FP do their best to conceal true costs
)
Out of interest, how many monthly payments have you made so far?
Re: 1st plus refund & drop in monthly payments 
If they do try to produce them then you produce the letter you have received from them to say they cannot be admitted as documentary evidence as they do not exist ( SEE THIS LETTER ).
