Early repayment

APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee. All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender. Generally, the lower the APR the better the deal for you, so if you are thinking about borrowing, shop around. Don't forget that sometimes bank loans are cheaper than the credit schemes offered by stores. If you find a deal with a low APR, ask the following questions:

1. Does the interest included in the APR vary, or is the rate fixed? If the rate is variable, your repayments could go up or go down. If the rate is fixed, your repayments will stay the same.
2. Are there any charges that are not included in the APR? This could include something like optional payment protection insurance. If so, make sure you understand what they are and when you would have to pay them.
3. What are the conditions of the loan or credit and do they suit you? For example, do you have a choice about how and where you make the repayments? If you suddenly have spare money, can you pay the loan off early - without penalties?
4. Can you afford the monthly payments? A more expensive loan (with a higher APR) could have lower monthly payments if they are spread out over a longer period of time. That might suit you better if your budget is tight.

There are literally hundreds of unsecured lenders in the UK today. Finding the right lender can be tricky but not impossible. The recent law changed in 2004 to the consumer credit act have tightened up the law surrounding the miss-selling of unsecured loans and credit. Lenders are now required to comply the new laws the outlaw early repayment penalties.

Rate tables are used to convey the cost of a loan. We are broker, and as such do not use rate tables because we have access to nearly every loan plan in the UK. We search thousands of loan plans and our rates are low. Use the loan calculator to find out how much repayments could start from.

Since the changes in the consumer credit act in 2004, early repayment has been included in statute and each loan now has the option of repaying the loan early.