The main advantage of a floating rate loan is the flexibility it offers for making additional repayments.

• You can make one-off lump-sum repayments, or repay the entire loan at any time.
• Your interest rate, and therefore your payments, can rise or fall to reflect market conditions.
• You can convert your floating rate loan to a fixed rate loan at any time.
• Regular monthly payment options include:
  • Table - Structured to provide consistent regular payments. Each payment consists of less interest and more principal than the previous payment.
  • Reducing - Payments steadily reduce over time, although the initial payments can be higher than with a table loan.
  • Interest-only - Suitable for short-term borrowing to cover a period until capital will be available to repay the loan in full.