What do my repayments consist of?

  • Investor

With Business loans, your monthly payment will consist of capital and interest on the loan amount outstanding. The interest is calculated daily on an amortising balance. The borrower makes a fixed repayment each month and, rather like a repayment mortgage, this means that proportionately more of the payment in the early months of the loan will be interest.

When you see your interest income from a borrower come in over successive months you should expect this amount to reduce slightly on each occasion. At the same time you will see slightly more repaid against the outstanding loan value each month.

With Property Bridging loans, the interest is either paid monthly to the investor, or is paid as a lump sum with the capital at the end of the term.

With Green Energy loans early payments consist solely of interest. Then as the loan progresses this payment includes the return of some of the capital lent.

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