A variation on traditional fixed rate HP which combines the best features of both fixed and variable rates plus offers the ability to take payment holidays with the Take a Break option.

HP PLUS has fixed equal monthly repayments of capital and estimated interest. Particularly appropriate if early settlement is expected or there is the possibility of lump sums being paid off during the agreement term. Both are possible and extra savings would become available because the interest is calculated daily on the remaining balance. Any lump sums paid during the agreement would consequently shorten the repayment period. The actual interest rate is based upon a negotiated percentage rate at the start of the agreement.

When the Take a Break option is selected this agreement becomes even more flexible because, by giving us 15 days’ notice, you can select the months (a single month or two consecutive months) where you would like to have an “unplanned” payment holiday. You can do this once in each year for a total of 6 months payment holidays during a three, four or five year agreement. If you take a payment holiday, we will simply extend the period of the agreement, calculating the cost of the holiday using the original interest rate. The payment amounts will not change, but the period will be lengthened as appropriate and the final payment may need to be adjusted up or down slightly to balance the account.