Here are some of the most common questions that we are asked at regular intervals, along with the relevant answers.
How quickly can I access the funds, once I have been approved?
If everything goes smoothly, the funds will normally be in your bank account within 21 days of the initial application.
How much paperwork is required?
The amount of paperwork you will be required to provide is typically kept to a minimum. You will obviously need to provide proof of address, recent wage or bank slips and personal identification (passport / driving licence). You will also need to sign your updated mortgage agreement and the actual loan acceptance form. Satisfactory proof of the value of your home will also be required in all circumstances.
Are there any fees or charges payable upfront?
No reputable broker or secured loan provider should ever ask you to pay anything upfront when applying to borrow.
Is it essential for me to provide proof of income?
Unfortunately, you will need to provide evidence of your income when applying for a secured loan with a regulated broker. Following the 2008 credit crisis, every UK lender will now require you to produce recent payslips, or certified accounts (for self-employed applicants) when processing your application for finance. If you don’t have any of these documents available, we may be able to use some other type of evidence of income.
What if my credit rating is poor, or I have mortgage arrears – is this a problem?
Although a good credit rating will enable you to access secured borrowing products with the most competitive rates, there are some lenders who are willing to do business with borrowers who have struggled with cash flow problems in the past.
The type of finance they offer is often required to as a bad credit loan.
As long as you have sufficient equity in your property to serve as collateral when securing the loan, you should still be able to borrow the amount you require, albeit at a somewhat higher rate of interest.
How much will the monthly repayments be?
The monthly repayment amount is worked out using the amount you want to borrow, the desired repayment period and the annual rate of interest. If you want to see how much it will cost you each month, when borrowing a lump sum over a fixed time-frame, you can use our secured loans calculator as a handy reference tool.
Is my home safe with a secured loan?
As long as you continue to make your monthly repayments on time, the chance of reposession is typically quite slim. However, if you lose your job, or end up ill or in hospital for some reason, there is a realistic possibility that you could eventually end up losing your home. If you are struggling to pay, make sure that you contact your lender at the earliest opportunity. You can also take out various protection options at the start of the loan to cover against sickness and loss of employment.
What can my loan be used for?
A secured loan can be used for absolutely anything. However, you may be required to declare your primary intention when applying for finance. Debt consolidation, home improvement and paying for cars, holidays and weddings are some of the most common reasons that people put down on their applications.
In rare instances, the lender might require some kind of proof that you spent the money on what you said you were going to, and they may even restrict the amount they are willing to lend based on your reason for borrowing.
Can I cancel my loan or change my mind after applying?
Once your secured loan application has been processed and the funds have been released, you have a legal opportunity to return the money you have borrowed within 14 days of the completion date without incurring a penalty. Information regarding this right can be found in the content of the credit agreement.
How long do the repayments extend for?
With a secured loan, the repayments can last anywhere from 3 to 25 years. However, we also offer bridging finance, which is typically repaid within a 6 to 12 month period.
Is it easy to apply?
Yes! Provided you apply online with a regulated broker offering a streamlined borrowing service, the application involves filling in a quick online form and waiting for a representative to call you back (usually within a few minutes).
A customer service member will guide you through the entire loan application process, whilst answering any questions you may have along the way.