Break even lease payment


 

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Break even lease payment

The lease payment at which a party to a prospective lease is indifferent between entering and not entering into a lease arrangement.



Break even lease payment

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Annualised payment scheme

Annualised payment scheme

Although the borrower pays interest at a variable rate, which can change from month to month, the lender charges a set amount of interest each month and then adjusts the balance at the end of the year.


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This results when you are unable or simply unwilling to meet your mortgage repayments. If you default on your payments, the lender is ultimately entitled to sell your home in order to recover the loan. Different lenders will have different policies on how long they give you before they start the legal proceedings to recover the loan. Many will have a separate schedule of charges which you will incur before they start proceedings.


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