A variable rate HP agreement - fixed equal monthly repayments of capital with interest calculated daily. Popular when interest rates are expected to fall or you expect to settle the entire agreement early or pay off lump sums.
A variable rate Hire Purchase agreement with fixed equal monthly repayment of capital. Interest is calculated daily, at an agreed percentage over Finance House Base Rate (or another mutually agreeable base rate), and is repayable monthly or quarterly. This is the Hire Purchase option to pick if you expect interest rates to fall during the period of the agreement. It is also possible to settle the entire agreement early and only pay interest up to the date of settlement or pay off lump sums and further reduce the overall interest charges. The machine becomes yours once the payments of capital and interest have been made.
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