Ecology - not using the full amount?

[wbc978]

Hi all,

 

This might be a silly question, but what happens if I don't draw down the full amount offered to me by Ecology BS? Would it count as an early repayment?

[Conor]

Nope, no obligation to draw it all down. 

 

[wbc978]

Thank you! I'm finding the whole concept confusing. Say I want to borrow a max of £250k at 4% interest. The estimated monthly repayment is £1100. Do I start paying that full amount right away, even though I've only released £70k to purchase a plot of land? But I'm only charged interest on the £70k? Sorry I'm a total newbie and I've researched for weeks to figure out if we can make this work. Thanks for any help!

[Ian Phillips]

You only get charged for what you borrow. So if you borrow £125k you only pay £550 a month.

[wbc978]

Thank you! I've seriously been driving myself mad trying to figure out how it works. Everything I read is all about how to draw down funds, not how to pay them back...

[Ralph]

7 minutes ago, wbc978 said:

Thank you! I've seriously been driving myself mad trying to figure out how it works. Everything I read is all about how to draw down funds, not how to pay them back...

Give them a call, they were happy to answer lots of my questions. I've found them to be very helpful and pleasant to deal with.

[Bozza]

And don’t forget they often transfer the funds to you really quickly, like in a day, so only request the funding when you actually need it.  No point paying 4% interest on something that’s probably earning 1% sitting in your account.  
 

+1 re speaking to them.  I had several what if scenario question they were happy to talk them through with me, so I fully understood.  Especially as my loan was part repayment/part interest only.