Looking for loans might not be as exciting as planning for Christmas. But it’s worth investing time into finding the right one. There are so many choices out there and you may feel a little overwhelmed with what’s on offer. Some companies talk about APR, which you may find confusing, especially if the final monthly amount ends up being more than you anticipated. When you take out a loan, you want certainty. And to know exactly what the actual monthly repayments will be.
The Halifax offers a Repayment Promise. It guarantees the maximum monthly repayments for a range of loan amounts, from £6,000 to £15,000. So, for instance, you could borrow £7,500 and be guaranteed loan repayments of £199 or less a month* at 6.8% APR representative.
Representative example: You could borrow £7,500 over 48 months with 48 monthly repayments of £178.35. The total amount repayable will be £8,560.80 at 6.8% APR representative, and an annual interest rate (fixed) 6.85%.
This way of seeing your loan will help you to feel more in control of your money. Why not take a look at a loans repayment calculator to see what you could afford?
With Christmas on its way, it could be that you’re thinking of taking out a loan to finish off that new extension that you haven’t had the funds to complete. Or you simply want to redecorate in time for the big day.
And even if it’s not the cost of getting ready for Christmas, there’s always going to be big expenses that come along – planned for or not. It could be something unforeseen, such as your boiler giving up the ghost or you suddenly needing to get a new car.
While loans aren’t for everyone, they are useful if you want the certainty of structured monthly repayments to help you budget. So when you start looking into the type of loans available it’s important to consider what you can comfortably afford to pay back every month. This will help you decide how much you can borrow – and over what time period.
The maths bit
Using a loans repayment calculator takes the hassle out of doing the numbers. All you do is enter the amount you want to borrow, the period over which you’d like to pay it back – and it can tell you what the monthly cost could be. You can then decide what you can realistically afford.
Once you’ve sorted out the right loan for you, you can start looking forward to the festive season, knowing that you’re on top of your money.
* 5-year loan term. Exclusive to customers who have held a Halifax current account for at least three months.