Hire Purchase - Variable Rate

Flexible financing options

The Hire Purchase Variable Rate Balanced Payment Plan is a finance option with the advantage of fixed-monthly payments. However, unlike Hire Purchase, where the interest is fixed, a balanced payment plan tracks changes in Finance House Base Rate (FHBR). Accordingly, as rates fall or rise over the period of the contract, so does the interest charge you pay.

You’d pay an initial deposit, and repay the balance in fixed-monthly payments over an agreed period. At the end of the term, any variation of interest is reconciled and will be settled as either a credit to you, or a charge. Alternatively, the term can be shortened or extended. Other options available with Balanced Payment Plan include a deferred final ‘Balloon’ payment, or settling your agreement early with a lump-sum payment.


  • Low deposit – therefore your cash can be used for other purposes
  • Flexibility - optional lump sum payments
  • Competitive – low-cost options for early termination
  • Fixed monthly payment - perfect for budgeting

Hire Purchase - Variable Rate

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