Loan examples

Parity Trust offers a number of loan repayment options and pending the outcome of your financial review, we will provide you with a recommendation of the loan repayment type which best suits your circumstances. The following table gives an example of the amount you would repay monthly and in total, against a £5,000 loan over 15 and 25 years (terms for illustration purposes only – other terms are available).

Loan Examples

Capital Repayment Loans: With a capital repayment loan your monthly payment is applied against the interest accrued and the capital balance. The amount you owe will decrease with every monthly payment you make.

Interest Only Loans: Your monthly repayment is applied against the interest accrued, but not the capital. You are required to repay the capital when the property is sold or upon expiry of the loan term.

Interest Roll Up Loans: With an interest only loan you are not required to make regular monthly payments. The loan balance increases as the interest accumulates over time. You are required to repay the loan capital plus interest accrued when the property is sold or upon expiry of the loan term.

Shared Equity: Parity Trust lends a capital sum with the amount owed, linked to the value of your property. No regular payments are required. A valuation will be required to assess the property value at the outset and again when the loan is settled.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.