What is a deferred repayment loan?
As a Responsible Lender, we recognise that everyone’s financial situation is unique. We have created a suite of loan products to suit a variety of needs and means. We understand that works to your home can be urgent, but your current income may not allow for monthly repayments at this time. If you can evidence that your income will increase in the near future, we may be able to consider a deferred capital repayment loan.
Our deferred capital repayment loan allows an initial period of time, usually between 1 to 2 years, before monthly capital repayments commence. During the first 1 to 2 years, you may make monthly interest only payments on the loan or you may be able to roll-up the interest which means no monthly repayments during the agreed term and the accumulated interest is added to the loan which is repaid monthly when the deferred period ends.
Who could apply for a deferred repayment loan?
This type of loan product may be suited to people who are expecting their financial situation to improve in the near future. For instance, self-employed homeowners can apply for a loan where they can evidence an expected growth in business, or people who may be in the process of applying or changing state benefits, through to those who have recently purchased their homes and want their outgoings to settle down before taking on a new monthly commitment. You may also have a loan coming to an end within 2 years which would evidence future affordability.
This product may also be useful for landlords or owners of empty properties who need to complete works to their properties before they will begin receiving rental payments.
What other loan products do you offer?
To read more about our other loan products, click here. Do not worry if it all seems overwhelming, our friendly advisers are trained to understand your situation and will talk you through the best option(s) for you.
How can I find out more?
For more information about this loan product, or any of our other loan products, please contact us for an informal chat with an adviser. Our advisers will be able to chat through your current circumstances and see if we can assist.