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But banks need not carry ordinary loans at market value.
Be wary of others dressing up their ordinary loans as a supposedly student tailored outfit; however they weave and spin figures, they don't operate in the same way and should be avoided.
Such loans -- which usually carry an interest rate about 1/4percentt higher than ordinary loans and usually require pristine credit and a down payment of 25percentt -- can be made without a borrower's proving to a lender where the income comes from).
But these were not ordinary loans.
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For lenders, these bonds have one big advantage over ordinary property loans.
It began with mortgage dealers who issued mortgages with terms unfavourable to borrowers, who were often families that did not qualify for ordinary home loans.
On the repayment side, Future Finance aims to provide terms that are more student-friendly than an ordinary bank loan, with ten-year loan terms, no early repayment charges and payment holidays built in.
Because it is secured, a bigger mortgage is a cheaper way of financing home improvements or holidays than an ordinary bank loan.
In most cases, you'll still continue to pay the same amount on your mortgage each month as you would have done if you'd had an ordinary home loan.
Obviously, an ordinary fixed-rate loan is a specific case of this type.
In last week's Budget we learned that it's converting the maintenance grant into an ordinary, recoupable student loan, a move that will hit working-class students the hardest.
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CEO of Professional Science Editing for Scientists @ prosciediting.com