Interest Only Loan (APR 5.63%)
What is the Interest Only Loan? With an Interest Only Loan, your monthly repayment repays the monthly interest accrued, but not the capital. This means your settlement figure will always remain the same no matter when the loan is repaid. The loan will be repaid out of the proceeds of your house when it is sold, or upon expiry of the loan term.
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 Interest Only Loan is available to eligible homeowners who have been deemed suitable for the prodcut following a financial review. The eligibility criteria relating to appropriate work can vary, so please contact Parity Trust for more information.
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 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 the interest payable will depend on 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, making budgeting easy. The table below illustrates the level of monthly repayments on a variety of borrowing scenarios:
|
Loan Amount
|
Monthly Repayment*
|
Settlement Figure after:
|
|
£3,000
|
£13.73
|
5 yrs
|
£3,000
|
|
10 yrs
|
£3,000
|
|
15 yrs
|
£3,000
|
|
|
|
|
|
|
£5,000
|
£22.88
|
5 yrs
|
£5,000
|
|
10 yrs
|
£5,000
|
|
15 yrs
|
£5,000
|
|
|
|
|
|
|
£15,000
|
£68.63
|
5 yrs
|
£15,000
|
|
10 yrs
|
£15,000
|
|
15 yrs
|
£15,000
|
* YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you miss monthly repayments, the total amount payable will be higher than agreed and the settlement figure may be more than the original loan amount. 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.