Capital Repayment Loan (APR 5.63%)
What is the Capital Repayment Loan? With a Capital Repayment Loan, the initial amount lent, and the interest accrued, will be repaid by way of monthly repayments. As such, your balance will gradually decrease until the full amount has been repaid.
Can I settle early or make overpayments? If you wish to make overpayments or pay the balance in full you can do so at any time with no charges being incurred.
Who is this loan available to? The Capital Repayment Loan is available to homeowners who have been deemed eligible for the product following a financial review. The eligibility criteria relating to appropriate work can vary, so please contact us for more information. The Capital Repayment Loan is ideal for those who can afford regular repayments, but who would like to see their debt cleared after a fixed length of time.
How much can I borrow? Loan amounts from £1,000 to £25,000 are available, dependent on the extent and cost of the works to be done.
Is security required? Yes. The loan will be secured against your property which means that the property cannot be sold, or the ownership changed without the Home Trust Loan being repaid.
What will my monthly repayments be and how much interest will I pay? Your monthly repayments will depend on how much you borrow and how long you take to pay the money back. However, unlike secured loans from most other lenders, the interest rate will remain at 5.49% (5.63% APR) throughout the entire term of your loan. This means that monthly repayments will also remain the same. The table below illustrates the level of monthly repayments and the total interest paid on a variety of borrowing scenarios:
|
Loan Amount
|
Term
|
Monthly
Repayment*
|
Total Amount Payable
|
|
£3,000
|
5 years
|
£57.29
|
£3,437.40
|
|
10 years
|
£32.54
|
£3,904.80
|
|
15 years
|
£24.50
|
£4,410.00
|
|
|
|
|
|
|
£5,000
|
5 years
|
£95.48
|
£5,728.80
|
|
10 years
|
£54.24
|
£6,508.80
|
|
15 years
|
£40.83
|
£7,349.40
|
|
|
|
|
|
|
£15,000
|
5 years
|
£286.45
|
£17,187.00
|
|
10 years
|
£162.72
|
£19,526.40
|
|
15 years
|
£122.48
|
£22,046.40
|
*YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you miss monthly repayments then the total amount payable will be higher than agreed. However, should you run into any financial difficulty, we will try to find ways of resolving the situation.
Are there any other costs involved? We do not charge any legal or administration fees to arrange your loan. However, we will need to collect a £50 Land Registry fee to enable us to secure the loan. Once processed by the Land Registry the fee is non-refundable.