RESPONSIBLE LENDING – MAKING CERTAIN IT IS POSSIBLE TO AFFORD THE MORTGAGE

RESPONSIBLE LENDING – MAKING CERTAIN IT IS POSSIBLE TO AFFORD THE MORTGAGE

COST CAP

There is certainly a restriction to your quantity that may be charged for a SACC however they are nevertheless very costly in comparison to other loans.

  1. an establishment charge of 20% for the amount loaned
  2. a month-to-month charge of 4% associated with the amount loaned

With a standard loan the total amount of interest you are charged reduces over time as you repay it as you’re able simply be charged interest from the quantity outstanding. The monthly fee applies to the whole amount originally borrowed regardless of how much you have paid back with a SACC.

The comparable rate of interest modifications dependent on the length of time you are taking the mortgage over however it is often between 100% and 500% per year. Continue reading »