EXAM PAPER STYLE GCERT NEW 2019 PRIMARY SCHOOL SUBJECT PAPER STYLE FOR STUDENT AND TEACHER.
One of the ways lenders might make a loan 'cheap' is to advertise extremely low monthly payments. This sounds good to the inexperienced borrower who looks only at monthly outlay. What unsuspecting borrowers may not realise is that lenders can make monthly payments cheaper by extending loans for longer amounts of time.
Before you assume this is a good idea, take some time to do the maths. A £10,000 loan at 5% with a repayment term of five years will be cheaper in terms of monthly outlay than the same loan paid over three years. But when you add in the total interest, you will actually spend more by servicing the loan for an extra two years. Cheap only gets you so far when you realise that lower monthly payments usually come at a price. Simply put, time can be your enemy when comparing homeowner loans.
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