In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
A repayment type is generally Principal & Interest or Interest Only.
Differences between these repayment types:
Principal and interest repayments
- This means you will be paying down your principal balance (as well as interest it accrues) from your first repayment.
- You could pay less interest over the life of the loan as your principal balance will be reduced by each repayment.
- Generally have lower interest rates, but as interest rates can change.
Interest only payments
- You're not reducing the principal balance which interest continues to be calculated on during this period. This may mean paying more interest over the life of the loan.
- Your minimum payments will be lower during the interest only period as you're not repaying the principal balance.
- When your interest only period ends your repayments are likely to be higher.
