Lease Purchase

It is very easy to confuse this product with a lease.

Lease Purchase is practically identical to Hire Purchase, the only difference being that instead of paying a deposit of 10-15% you typically pay a deposit as a multiple of the repayments. The remaining balance and interest is repaid in instalments. The number of instalments is defined by the pause.

As an example, a hire purchase agreement would have a 10% deposit followed by 36 monthly repayments. The equivalent Lease Purchase would have a profile of 3 payments in advance followed by 33 (if terminal pause) or 35 (if spread pause) monthly repayments.

Your eligibility for the VAT and writing down allowances is exactly the same as for hire purchase, and you can expect the fee structure to be the same.

Again, Lease Purchase agreements can be based on a fixed or variable rate, and the monthly commitment can be reduced by the inclusion of a balloon.

SCR Office
© 2016 Sterling Capital Reserve Ltd

Sterling Capital Reserve Limited is a Broker not a Lender.
Sterling Capital Reserve Limited is authorised and regulated by the Financial Conduct Authority.
Sterling Capital Reserve Limited is entered on the FCA Register https://register.fca.org.uk under reference 733615.
The guidance and/or advice contained in this website are subject to the UK regulatory regime and are therefore targeted at consumers based in the UK.
Sterling Capital Reserve Limited is registered in England and Wales No. 3853461.
Sterling Capital Reserve Limited is registered for VAT No. 737604523.

Head Office
Sterling House, 5 Wheatcroft Business Park, Landmere Lane, Edwalton, Nottingham NG12 4DG
Tel: 0115 984 9800 Fax: 0115 921 5550 - Map and Directions to our Head Office

ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EARLY REPAYMENT CHARGES APPLY. A BROKER FEE MAY APPLY.

NACFB