This repayment choice is a form of lease purchase that gives you the option to follow a variable rate of interest. Balance Payments gives you a fixed percentage over the current Bank of England interest rate, if therefore this rate falls so does yours.
When you begin your agreement you will be advised of the current Finance House Base Rate (FHBR), plus an added on percentage by the financial lender. The combination of these figures will determine your monthly repayment towards your capital and finance charges. It is important to remember that the FHBR can fluctuate; this means that although you monthly payment will remain the same the length of your agreement could either increase or decrease.
You can terminate the agreement at any point should you wish, you can contact us and we will raise a settlement figure for you, this is calculated to cover both the outstanding capital and any remaining interest. We can also provide you with month by month plan of how your repayments affect your loan. This however will not take into account any changes in rate.