This length of loan is great for people that need to cover the cost of something now, but also want to spread their repayments over a longer period of time.
Many of our customers who take out 5 year loans have decided to invest in home improvements to increase the value of their property, or make important renovations. It might be a new kitchen, garden or boiler; either way, with Evolution Money you could get the money you need and pay it back at a rate that suits you.
While the total amount repayable is higher with a 5 year loan compared to a 12 month loan, the cost of each instalment actually works out cheaper. That means there’s less money coming out of your account each month, leaving you with a bigger portion of your pay packet.
A 5 year loan may also be an option if you are looking to consolidate any existing debts. By consolidating debts into a single monthly payment, you can reduce your overall monthly repayment while giving yourself a longer term to pay the total back over. This could make the task of managing your outgoings easier, particularly if you owe money to multiple lenders. Before taking out a loan to consolidate your debts you need to consider that the total repayable may be more and the term could be extended. Also, by converting your unsecured debt in to a consolidated secured loan, you are securing that debt against your property. So, it’s important to note if you don’t keep up with your repayments, your home may be at risk.