What is a variable rate?
A variable rate is an interest rate linked to other rates that can increase or decrease over time. Linked to things like the Bank of England Base Rate. Variable rates are usually much cheaper than fixed rates in the short term but they are not guaranteed to stay low. If the Bank of England raises the interest rate and you have a variable rate loan, your monthly repayments could increase considerably.

What is a fixed rate?
A fixed rate is an unchanging interest rate for an agreed amount of time, lenders offer fixed rates but these are typically higher than the lenders standard variable rate. A fixed rate guarantees that your payments stay the same and do not fluctuate for a specified amount of time.

Why choose a secured loan?
There are many reasons why you might choose to take out a secured loan over an unsecured product or a re-mortgage. As an example, if you are on a low rate mortgage or a mortgage that has early redemption penalties then a secured homeowner loan is perfect and won’t effect your current mortgage. Additionally, the amount you can borrow when applying for a homeowner loan is much higher than with the vast majority of other unsecured loan products. You can also spread the payments over a longer term with a secured loan which means that your repayments are more affordable – however remember that as a general rule the longer the term the more you’ll pay back.

Am I eligible to apply for a secured loan?
If you are a UK homeowner and you own your own property outright or you have sufficient equity then you can apply.

How quick is the process?
From application to completion on a secured loan should take around 3 weeks. This could be quicker if you have all the information readily available. However if your circumstances are a little complicated or if we have to request additional information it could take longer. Each set of circumstances are different and can affect the completion time.

What happens if I have missed payments, possibly had CCJ’s or defaults?
If you have struggled in the past and ran in to difficulty paying your monthly credit commitments you may find it harder to get a competitive rate or even a loan or mortgage. However, even if you have or have had bad credit there are still a number of borrowing options available to you. As with all applications we look at your individual circumstances and find the most affordable borrowing product to suit your specific requirements. We have extensive knowledge on all our different lenders, what they will & will not accept and also have the capability to refer cases which may fall slightly out of the lenders criteria, only individual experienced advisors can do this – technology cannot! If you have struggled in the past and ran in to difficulty paying your monthly credit commitments you may find it harder to get a competitive rate. However, even if you have CCJ’s and defaults there are still a number of borrowing options available to you. As with all applications we look at your individual circumstances and find the most affordable borrowing product to suit your specific requirements. We have extensive knowledge on all different lenders and what they will and will not accept and also have the capability to refer cases which may fall slightly out of the lenders criteria.

What does LTV stand for?
Loan to Value is an expression that is used by secured loan or mortgage lenders to determine the amount you want to borrow against the amount your house is worth. EG, if your home was worth £100,000 and you wanted to borrow £80,000 this loan would be 80% LTV. Some lenders will allow loans (inc fees) up to 100% LTV

What is a consolidation loan?
This is a secured borrowing that is used to consolidate several debts in to one monthly payment over a longer period of time. Therefore instead of paying several different monthly payments for credit, it is reduced in to one monthly payment so it is easier and cheaper to manage. It is very important people understand that although a longer repayment term will lower the amount you pay back each month, you will ultimately pay back a lot more money in terms of the actual interest you are charged .

How much can I borrow on a mortgage?
The main things which dictates how much you can borrow is your income and current credit commitments, each lender has different ways to calculate what a person can borrow.

How much deposit do I need?
For a secured loan you will not require a deposit. However if you are purchasing a property then some lenders will accept a minimum deposit of 5%. With a larger deposit, for example 40%, there will be more lenders available increasing the probability of obtaining a cheaper mortgage & increasing the probability that you will be accepted.

Do I need insurance on my mortgage?
At the very least you will need buildings insurance, we would also strongly recommend that you insure the contents of your home. Other insurances which we would recommend is a life insurance policy to pay off your mortgage should you die during the term and an income protection policy to protect your mortgage payments if you were unable to work for any reason. We can quote you on the whole of market for these products if you are interested. These are not mandatory but we can talk you through the benefits if you are interested.

What is the difference between interest only and a repayment mortgage?
A repayment mortgage is guaranteed to pay off your mortgage by the end of the mortgage term as long as all payments have been made, An interest only mortgage is where the monthly payments only covers the interest charges on the mortgage but the loan amount does not reduce over the term and remains the same. You would either need to sell the property to repay the mortgage or have another source to repay the loan.

What costs are there when buying a property?
Stamp Duty Land Tax (SDLT), Current amounts payable can be found at https://www.gov.uk/stamp-duty-land-tax Solicitors fees, this is based on the purchase price of the property, whether the property has a leasehold or freehold etc. You will also find the property searches, land registry, utility searches, potential insurances required will all be passed on to you by your solicitor – in general these are not large amounts but will be due on completion of your mortgage. Surveys, there are various types of surveys that can be carried out. By far the most common survey is a homebuyers survey, some lenders will provide these free of charge. Valuation fees, for most lenders these are based on purchase price, some lenders offer a free valuation. Lender arrangement fee, these can be added to the loan amount or paid upfront if you prefer. Broker & lender fees, these are generally only charged on completion of your loan. We do NOT charge any upfront fees. Our broker fees are competitive and are usually added to the loan.

What is a Buy to Let (B2L) mortgage?
You may decide to purchase a house to rent out. Generally lenders will look at the LTV, the rental
income for the property and any income you earn in addition to the rent you receive. You may pay a slightly higher interest rate and you might not be able to borrow as much. You can borrow as an individual or as a Limited Company. Under current HMRC rules any second home will incur a higher rate of stamp duty.

Bad Credit, CCJ’s Defaults and arrears
If you have struggled in the past and ran in to difficulty paying your monthly credit commitments you may find it harder to get a competitive rate or even a loan or mortgage. However, even if you have or have had bad credit there are still a number of borrowing options available to you. As with all applications we look at your individual circumstances and find the most affordable borrowing product to suit your specific requirements. We have extensive knowledge on all our different lenders, what they will & will not accept and also have the capability to refer cases which may fall slightly out of the lenders criteria, only individual experienced advisors can do this – technology cannot!