Loan Term
A loan term is the period of time that your loan lasts for. The loan term is arranged with your lender when you apply for a product and can last anything from 1
year to 25 years onwards. It is also possible to arrange extremely short loan terms (with bridging loans, for example).The loan term that you choose for your borrowings
may, to a certain extent, be set out by the type of loan that you take out. So, many mortgages, for example, are taken out for longer periods (i.e. 25 years), whilst personal
loan terms tend to run for shorter periods. Your loan term will also have an effect on how much you pay back for your loan overall. The longer the term, the lower the
payments - but the more the loan will cost you in the long run, as you will be charged interest for longer.
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