Hire Purchase is a way for you to spread the cost of buying an asset over a number of years. You'll have to pay an initial deposit and can then spread the rest of the cost over the term of the agreement. You'll not own the asset until you've repaid the amount due under the agreement in full and paid the final Option to Purchase Fee, but you'll always have possession and be responsible for it. Read our Hire Purchase factsheet (PDF, 531KB) for more information.
If you're a Sole Trader or Partnership of 2 or 3 partners borrowing up to £25,000.00, or a private individual borrowing any amount, your agreement will be a Conditional Sale. Like Hire Purchase, a Conditional Sale agreement allows you to spread the cost of buying an asset over a number of years but the key difference is you are contractually committed to buying the goods. Conditional Sale is regulated under the Consumer Credit Act 1974 (CCA), which gives customers certain rights and protections under the agreement. Read our Conditional Sale factsheet (PDF, 428KB) for more information.
No. Your agreement type is determined by whether you meet the criteria for being regulated under the Consumer Credit Act 1974 (CCA). Conditional Sale will apply if you're a Sole Trader or Partnership of 2 or 3 partners borrowing up to £25,000.00, or a private individual borrowing any amount. Hire Purchase applies to all incorporated businesses borrowing any amount and unincorporated businesses borrowing over £25,000
You may be able to continue leasing the goods for a secondary annual rental. Or you could act as our agent and sell the asset (conditions apply). We'll send you a letter with more details nearer the time.
Your finance agreement is confidential. However, if you provide us with written consent we can discuss it with your nominated person.You may have a short period of time to cancel or withdraw from the agreement. This will depend on whether your agreement is regulated by the Consumer Credit Act 1974 (CCA).
Please check the terms and conditions under the "Your Rights" section of your agreement. It'll tell you how to cancel your agreement should you be entitled to.
If you have a Hire Purchase or Lease purchase agreement you’ll pay a standard option to purchase fee. This transfers legal ownership from Lombard to you. It will be taken as part of your final monthly payment. You and your Relationship Manager will agree the amount in advance.