Does the loan repayment come from the proceeds of my claim?
Repayment is made either from the proceeds of your claim, or from the insurance. You will instruct your solicitor to make the repayment from your settlement before they issue you the remaining balance.
No, you do not pay any interest until the loan is settled at the end of your case. As we do not compound the interest there is no cost penalty for waiting until settlement, so you pay the same total interest when you settle the loan as you would have if you paid it each month.
Importantly, the interest is fixed for the term of the loan and is not affected by changes in interest rates or the cost of borrowing, so you know exactly what you will be paying.
Repayment is at the end of your proceedings, but if you breach the loan agreement we may ask for repayment of the loan at any time. This can include dis-instructing your solicitor without our agreement or failing to follow advice from your solicitor in any material way that impacts whether Novitas will be able to recover the monies loaned to you.