We have three main loan products available which your adviser will discuss with you in detail at your appointment. The loan product you are offered will depend on your circumstances, eligibility and which product best meets your needs and means*.
Our main product is a capital repayment loan which does what it says on the tin! The loan is repaid monthly over a fixed period and every month the repayment covers part of the capital and part of the interest.
If however, after your financial assessment, a capital repayment loan is not affordable for you or is not the most appropriate product, your adviser may discuss an interest only loan with you. These loans are usually reserved for people 60 and over and the monthly repayment covers only the interest on the loan. You will repay the capital amount borrowed on the date on which you leave the property, for example when you sell your property.
For certain people, the most appropriate loan product may be our interest roll up loan product. This is where you do not have to make any monthly repayments to us. Interest accrues on the balance of the loan outstanding on a daily basis and such interest will be compounded annually. You will repay the loan and accrued interest on the date on which you cease to occupy the property as your main residence, or the property title transfers away from you, or you sell the property. It takes approximately 17.5 years with this type of loan for the interest to match the capital amount borrowed. Our interest roll up loan product is generally reserved for people 65 plus given the nature of this loan.
As with all of our loans, there is flexibility to make lump sum reductions of £100 or more at any stage to reduce the balance outstanding. You can also settle the loan early with no early repayment fees or charges.
For more information, contact us and your local adviser will be in touch to discuss more about your circumstances and answer any questions you may have.
*As a Responsible Lender, we will not lend if after an assessment we do not feel this is the right option for you. All loan products are subject to status and eligibility.