Odd Loan set-up

[Tasmaniandevil]

Hello Nigel, it's been a while since I've posted - I hope all's well with you. Here's another one for you.
I took out a loan for CHF 120,000, in 2006, in order to purchase my apartment, to be repaid over 15 years (180 months). When I reviewed the paperwork many years ago, having become unable to maintain the repayments, I was 'alarmed' to read that the repayments would be as follows: 179 monthly instalments of CHF 760 (which is absolutely fine), but followed by 1 final instalment of CHF 42,000!!! I thought 'What the Dickens is this'? (or words to that effect!). Initially, I thought the Bank must have set it up as an interest-only loan, where, as far as I know, all of the interest is paid over the duration of the loan - the full loan amount (in my case CHF 120,000) becomes payable at the very end (at least that's how they work in the UK), so, that didn't make sense. At the time of making the application, as far as I can recall, I asked for a straightforward repayment loan - I certainly would not have wanted an interest -only or any other type of loan for that matter. My loan statements show that interest is capitalised twice yearly, which would suggest to me that it is in fact a repayment loan. With repayment loans, my understanding is that, in the early years, the vast majority of the monthly instalment comprises the interest element, and a very small amount, the capital. It is only in the latter stages when that situation reverses ie. most of the instalment is the capital. So, therefore, I would have expected that coming towards the end of the 15 year period, the CHF 120,000 would have been repaid in full, and, not for the Bank to be demanding an additional lump sum of CHF 42,000 (over 1/3 of the original loan amount), which they say "will be settled by the product of a new loan on maturity (refinance)".
Nigel, can you or anybody shed any light on this, because I am just completely astonished?
Btw: I know I can/could have queried this directly with the Bank, but, because I've been in default for several years, and now waiting for legal action to commence, it seems somewhat academic!
For the benefit of you or indeed anyone who may be interested, details of my case can be found under Index - 'Selling Property', Topic - 'Defaulting on a Loan'. Thank you very much. TD.

[Nigel Howarth]

Hi Tasmaniandevil

The total cost of the loan works out at roughly 148% of the sum borrowed over 15 years, which is reasonable.

As you say, usually much of the repayments in the first years go towards paying the interest, but then you start to pay more of the loan amount and less interest as yo approach the end of the loan term.

I don't know how they work the out the final payment, the banks here are (were) hopeless.

Regards,