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Exact(5)
Firstly, a capital release loan where no regular repayment is made, but the loan is repayable when the house is no longer the borrower's main residence and is sold.
If no repayment is made within the next 30 days, all disbursements of existing loans will stop.
Repayment is made in a lump sum at maturity or in installments throughout the life of the loan.
But the restriction will be scrapped, probably by the autumn, so that you can take out your money and put it back in within the same year, without losing your Isa tax benefits - as long as the repayment is made in the same financial year as the withdrawal.
In many cases, that repayment is made by selling the home and then turning over the proceeds (or a portion of them) to the bank.
Similar(55)
ADDING to the mystery, the repayment was made using a peculiar transaction involving the redemption of "convertible preferred equity certificates" that TIM Hellas had issued.
The repayment was made in financial year 2011/2012 from capital monies - no individual revenue budget was affected.
They then receive further financial advice, training and support as repayments are made.
The loans are designed to finance public sector energy efficiency projects, ensuring that repayments are made from within savings.
Student debt repayments are made at 9 per cent of earnings over £15,000 a year, and interest is currently charged at just 1.5 per cent a year.
The borrowers are encouraged to assist each other, and all loan disbursements and repayments are made publicly, in front of other groups.
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