Capital Repayment Loan (APR 5.1%)
The loan capital and the interest accrued are repaid by way of monthly instalments.
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 aged 18 and over. The eligibility criteria relating to appropriate work can vary, so please contact South Coast Moneyline 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. The amount lent will be dependent on the extent and cost of the works to be done.
Is security required?
Yes. The loan will be secured using an equitable mortgage. Similar to most other mortgages on the market, this 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 5.0% (5.1% APR) throughout the entire term of your loan. This means that monthly repayments will also remain the same, making budgeting easy. 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 Interest |
|
£3,000 |
5 years |
£56.61 |
£396.60 |
|
10 years |
£31.82 |
£818.40 |
|
15 years |
£23.72 |
£1,269.60 |
|
|
|
|
|
|
£5,000
|
5 years |
£94.36 |
£661.60 |
|
10 years |
£53.03 |
£1,363.60 |
|
15 years |
£39.54 |
£2,117.20 |
|
|
|
|
|
|
£15,000 |
5 years |
£283.07 |
£1,984.20 |
|
10 years |
£159.10 |
£4,092.00 |
|
15 years |
£118.62 |
£6,351.60 |
*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, where possible we will try to find ways of resolving the situation before considering any formal action.
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 an HM Land Registry fee which enables us to register the charge to secure the loan against your property. The standard fee is £50, although your Home Trust Loan Officer will confirm the amount before you enter an agreement. When the Loan Agreement has been signed, the HM Land Registry fee will be collected and once processed by the Land Registry, is thereafter non-refundable. Until you sign your Loan Agreement however, there are absolutely no costs and you can be assured that there is no obligation to take out a loan.