Secured & unsecured loans, mortgages, home & business finance, top up loans, bridging loans, home loans, debt consolidation, flexible mortgage, remortgage, and all other forms of loan services etc.

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TOPICAL CONTENT......

Quick links  to our LOAN guide -
unsecured loan guide  I  secured loan guide

A Guide to Unsecured Personal Loans
Unsecured personal loans are offered by lending institutions such as banks and building societies. They are not available for business purposes and some other uses may also be excluded, for example the purchase of timeshare properties. Below is a quick and easy guide to personal loans.

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STEP 1 - WHICH LOAN?
Unsecured personal loans are available for a range of different amounts and repayment terms. They are not secured against property or other assets. The repayment term available may depend on the purpose for which you require the loan, and may be restricted accordingly (e.g Loans for holidays may be restricted to a 12 or 24 month term). The amount available usually ranges from £500 to £25,000 over a term of 6 months to 10 years. This will vary between lenders and products. The amount borrowed is subject to an interest charge, which will be quoted as a percentage. This rate is known as the Annual Percentage Rate (A.P.R). As a general guide, it is advisable to compare the A.P.Rs of different products as this will help you to determine how competitive they are. The way lenders quote interest rates varies.

A fixed interest rate will stay the same throughout the term of your loan, regardless of any changes in the bank base rate. If the rate offered is a variable rate, it may rise or fall in line with any base rate changes during the term. When lenders quote their APRs they will state whether these are "typical" or whether they are set at one rate for all successful applicants, regardless of the risk they present. The typical rate is a rate that is offered to over 50% of successful applicants, and the exact rate offered to you will depend on your personal circumstances, the amount and term of the loan along with the credit assessment procedures.

Personal loans are repayable monthly. The lender may permit over-payments and lump sum payments, which allow you to clear the loan over a shorter term than that agreed at the outset. It is important to remember that some lenders will charge you a penalty for repaying your loan early - this can be up to 2 month's interest. Lenders may offer "payment breaks" or "repayment holidays" as part of their personal loan package and these allow you to take a break from your repayments at the beginning of the loan or at any agreed point during the term. Interest may still accrue on the balance outstanding so the exact terms should always be verified with the lender.

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STEP 2 - HOW DO I APPLY?
Lending institutions offer you the option of applying for your personal loan either in person at a branch, via a written application, over the telephone or online. In many cases, lenders offer different rates depending on the method by which you apply i.e the rates for telephone applications may be different from those for online applications. Assessments are generally made very quickly based on your personal circumstances. These are often referred to as credit scoring facilities. Credit scoring assesses your personal circumstances and statistics to ascertain which broad category of borrower you fit in to.

Lenders will also use credit reference agencies to obtain information about you. They provide a detailed analysis of your financial position. In particular, they provide details of county court judgments, defaults and any existing credit agreements, along with information relating to the electoral roll and your past credit history. If you are refused a personal loan or wish to make enquiries concerning your own credit file, you can apply to the credit reference agencies for a copy of your credit file. This service is subject to a small fee, and is available by contacting:

Experian Ltd
Online: www.uk.experian.com/consumer
Telephone: 0870 241 6212
Post: Consumer Service Help Centre
Experian Ltd, PO BOX 8000, Nottingham, NG1 5GX

Equifax PLC
Online: www.equifax.co.uk
Telephone: 0870 010 0583
Post: Credit File Advice Centre
PO BOX 3001, Glasgow, G81 2DT

If you are experiencing problems with your credit you may wish to contact the following companies for some help and advice. Gregory Pennington or Bains & Ernst

STEP 3 - HOW AM I PROTECTED?
Personal loans are governed by the Consumer Credit Act 1974. The Act contains strict regulations about how money is lent and covers unsecured loans up to £25,000. These are known as regulated loans. When taking out a personal loan you will be asked to sign a credit agreement, which you should read carefully before you sign as you will be bound by it's terms. Lenders offer insurance policies or payment protection schemes to protect you in the event of accident, illness, unemployment and death (subject to conditions), for which the charge is added to your monthly repayment.

The cover and cost does vary between lenders and you should check what their policy includes, and just as importantly, what it excludes. If you are considering protecting your repayments in the event of accident, sickness, unemployment or death, why not browse the Income Protection finder. If you do have difficulty making your repayments you should seek advice from your lender immediately. The earlier you contact them, the more sympathetic they are likely to be. You can also seek advice from a voluntary organisation such as The Citizens Advice Bureau.

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A Guide to Secured Home-Owner Loans

A secured loan is any loan that requires the borrower to provide the lender with some form of security. In the case of secured home-owner loans, the security will be the borrower's property, regardless of whether it is mortgaged or owned outright. Loans secured against property that is already mortgaged are known as second charges, whereas loans secured against a property owned outright with no existing mortgage in place are known as first charges. See below for a quick guide to secured loans.

STEP 1 - WHICH LOAN?
Secured home-owner loans are available in varying amounts and for many different purposes, including debt consolidation. The amount available usually ranges from £3,000 to £50,000, although some lenders will consider lending up to £100,000. The amount borrowed is repaid monthly over a term agreed at the outset, which will usually range between three years and twenty five years. You may be charged a penalty if you repay your loan earlier than agreed, and you should check each lender's individual policy with regards to this. Lenders charge interest on the amount you borrow, which is referred to as the

Annual Percentage Rate (A.P.R). The amount you can borrow, the term available and the A.P.R will all depend upon the equity you have in your property, the lender's view of your ability to repay the loan and your personal circumstances, for example any adverse credit. Subject to your circumstances, you may be able to borrow up to 125% of the property value. The A.P.Rs quoted by the lender will usually be typical rates, and these act as a guide only as the exact rate offered will be on an individual basis. As a general rule, it is advisable to compare the A.P.Rs of different loans, as this is a good way to determine how competitive they are.

Generally, secured loans are much easier to obtain than unsecured loans. This is because the lender has the added benefit of security, which provides protection in the event of a customer's inability to repay. This also means that persons who are self-employed, or who have recently changed jobs, or who have adverse credit can take out a loan. They are also useful for larger amounts or where the applicant requires a longer repayment period.

STEP 2 - HOW DO I APPLY?
Lending institutions offer you the option of taking a secured loan via their branch network, over the telephone, via a written application or online through their website. Initial assessment of your application can be made quickly, however loans under £25,000 are regulated, and a 7 day consideration period will be given to allow time for you to assess the implications of the credit agreement, and to ensure that you are fully aware of all the terms and conditions. When assessing your application the lender will consider your income and financial commitments to determine whether you can afford to take on and repay additional finance.

They will look at your past credit history and take into consideration any adverse credit such as mortgage arrears, defaults or county court judgments. All lenders insist that where an applicant is married, both parties should be named on the application form. Lenders frequently use credit scoring facilities and credit reference agencies to assess your suitability.

Credit scoring assesses your personal circumstances and statistics to determine which broad category of borrower you fit in to. Credit reference agencies provide a detailed analysis of your financial position as they hold information relating to your credit history, any adverse credit and any existing commitments. They also provide address and electoral roll information. If you are refused a loan or wish to make enquiries concerning your own credit file you can apply to the credit reference agencies for a copy of your credit file. This service is subject to a small fee, and is available by contacting:

Experian Ltd
Online: www.uk.experian.com/consumer
Telephone: 0870 241 6212
Post: Consumer Service Help Centre
Experian Ltd, PO BOX 8000, Nottingham, NG1 5GX

Equifax PLC
Online: www.equifax.co.uk
Telephone: 0870 010 0583
Post: Credit File Advice Centre
PO BOX 3001, Glasgow, G81 2DT

If you are experiencing problems with your credit you may wish to contact the following companies for some help and advice. Gregory Pennington Bains & Ernst

STEP 3 - HOW AM I PROTECTED?
A secured home-owner loan is subject to The Consumer Credit Act 1974. The Act contains strict regulations about how money is lent and covers loans up to a value of £25,000. Loans for sums greater than £25,000 are unregulated.

When taking out a secured loan you will be asked to sign a credit agreement, which should be read carefully as the terms are binding. For regulated loans of under £25,000 the lender must provide a consideration period of 7 days. Lenders offer insurance policies and payment protection schemes to cover your monthly repayments in the event of accident, sickness, unemployment and death (conditions apply). Cover does vary between lenders, as does the cost, therefore you should check individual policies for what is included, and just as importantly, what is excluded.

If you are considering protecting your repayments in the event of accident, sickness, unemployment or death, why not browse our Mortgage Protection and Income Protection finders. If you do experience difficulties with your repayments, seek advice from your lender as soon as you can. Remember, your property acts as security for your loan and it is therefore at risk in the event of any repayment problems. The earlier you seek help, the more sympathetic your lender is likely to be. You can also seek help from voluntary organisations such as the Citizens Advice Bureau.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

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