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Honeymoon loans offer customers a special reduced ("teaser") rate for an introductory period, often one year. The loan then reverts to a standard or special variable rate.

Whilst this might help initial cash flow, these loans can be on offer with different packages, so again you need to look at the overall package in relation to your specific requirements, working out the overall rate applicable to the loan over a period of years. Be sure to know what the AAPR is - the effective rate of the loan, as part of


ascertaining whether to take a discounted rate or not.


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