If you have a loan – or if you are planning to get one – then it’s very normal that you want the effect it has on your life to be as low as possible. You’d want to make sure that you either pay as little as possible per month, or, if you’re savvy, that you pay as much as possible (realistically possible, that is) for as short a time as is necessary.
Getting the 12 month payday loans for you is not always easy, and there are often many factors to consider. If you’re worried you are not (or might not) be getting the right deal, then it’s time to reconsider everything and make some adjustments. If you need help, then this one’s for you: here are the top five ways to lessen the cost of your loan.
1. Getting a cheaper deal
If you’re currently still on the deal that you signed under your lender’s standard variable rate agreement (SVR), then you may want to look around for something more interesting. Most loan lenders are struggling – the loan rates are at a record low now – so there are other opportunities out there. For example, if you have been paying for a few years at a steady rate, without missing payments, and own about 40% of your home, another lender may give you more favorable rates.
2. Pay a little more
Paying a little more each month has a cumulative effect because you usually pay the interest first. It significantly shortens the term of the loan.
3. Reducing payments
Check your contract: are there any fees regarding the term of the contract? By extending your term, you may avoid many fees.
4. Making it shorter
Of course, you may want to make your loan shorter if you’re willing to pay more each month.
5. Opt for a different mortgage
Check about an off-set loan, where the savings account and mortgage are combined.
If you have not taken a 12 month loan yet but are planning to get one soon, then remember this golden rule: the more deposit you can put down at the start, the easier it will be for you in the long run. When it comes to loan, the amount you have saved matters a lot. Not only does it influence the amount you have to borrow (the more deposit you have saved, the less you need the bank to put forward), it seriously influences the interest rates that you might be able to get (as the risk of the bank is lower if you have your own deposit) – as confirmed by www.12monthloanpayday.co.uk from Open Vision Finance. In the end, a lot of money (and time) can be saved by taking on a mortgage the right way. Be smart and think hard, and never hesitate to seek professional advice – it’s worth it.