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FAQ's

How much can I borrow?

First things first: Never borrow more than you can afford to pay back each month. However if you're in a position to pay back the amount, an unsecured personal loan will normally be between £5,000 and £20,000 whilst a loan secured on your house - a homeowner loan will allow you to borrow from £20,000 +

How much do I have to pay back per month?
Your loan will have an APR, which is the Annual Percentage Rate. This will determine the interest on the amount you pay back and therefore along with the term you decide to pay the loan back over - your monthly payment. The APR will include not just the loans interest rate, but also any additional set up charges showing the true cost of the loan. Before entering into any loans agreement, please make sure you know and understand all the facts about the deal.

What is the standard payment period for a loan?
Most personal loans have a payment period of 5 - 8 years, whilst loans secured on your home are paid back up to 25 years after they have been taken out.

Will I be applicable for a loan?
It depends on your situation. If you have good credit history you shouldn't have a problem with both personal and home secured loans. However, if you have ccj's or poor history you may find you can only get a homeowner loans as the lender needs some sort of security for the repayment of the loan. Sometimes a lender may not wish to give you a loan, this may be for a number of reasons, however the lender does not have to tell you exactly why you the loan been refused. You can ask for the name and address of any credit reference agency used for assessing the loan.

Bad Credit Records
If you have a bad credit record then you can usually still get a loan but the terms you are offered, however, will vary according to how big a risk you appear to be. If you have CCJ's, defaults or mortgage arrears, you can expect to pay a higher rate of interest. The vast majority of lenders use one of two major credit checking companies. These companies hold information on more or less the whole adult population of Britain so if you, or someone at your address has defaulted, got a county court judgement or otherwise had financial problems, then it's going to be on record. This record is invariably searched every time you apply for a loan, H.P., store credit or any other form of borrowing so your history affects the terms you are offered or whether you can obtain a loan at all. The High Street banks and Building Societies will generally not help anyone who has experienced problems in the past few years, however there are many well established and reputable financial services companies who will offer loans based on your present circumstances rather than your history.

What is APR?
The APR. on a loan reflects the true cost of a loan to you. It takes into account the loan interest rate and any additional charges making it easier to compare loans when borrowing.

Can I pay off my loan early?
If after taking out a loan you wish to repay the loan early you will have to ask the lender for a redemption or early settlement statement. This will show how much you have to pay to redeem the loan. You will not (unless the loan only has a few months to go) be required to pay all the loan interest due over the remaining term.The method for calculating the loan settlement figure varies however of loans up to £25,000 the maximum you will repay is calculated using "the rule of 78".(this is a complex calculation governed by the consumer credit act 1974). 16 million people, over a third of the UK adult population, are unaware that the majority of personal loan providers levy penalties on borrowers who repay their debt early, according to research from Intelligent Finance (IF).