Partner sites
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Equity |
What is equity?
Equity is the difference between the value of your property and the amount of credit you have secured against it. So, for example
if you have a mortgage of £50,000 and your home is worth £100,000, you have 50% equity. Most home owners do not own their home
outright but most homeowners have a mortgage that is less than the value of their home so most home owners will have equity.
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Bad Credit |
Will I be declined because of bad credit?
Bad credit in itself will not stop you obtaining a loan through us. Some lenders even lend to people regardless of their credit
rating. Some lenders can ignore certain adverse units, for example if you have a default that is less than £250 or if it is over
3 years old, some lenders will not even count it against you.
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Loan Amount |
How much money can I borrow?
Different lenders offer different home loan options. Some have a maximum of £75,000, some have a maximum of £100,000, some may not
have a maximum although very large loans will need to be referred. The main thing that will restrict the amount of your secured home
loan is the amount of equity you have in your property and some lenders even offer up to 125% equity home loans now.
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Self Employed |
I am self employed, is this a problem?
No. There are many lenders now who are happy to lend to self employed people whether they have been self employed for a long time and
have certified accounts, or if they have been self employed for just a few months and have no accounts. Some lenders will allow you to
self certify your income. Self certification or self declaration is between you and the lender and this income is taken at face value.
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Loan Companies |
I have never used the Internet for finance, how do I know you are a reputable company?
All enquiries are passed to large companies who are brokers for panels of large reputable banks and finance companies. These companies should always
try to place you with a lender who offers the best terms for your circumstances. To check the lender that you are being placed with to ensure you
are comfortable using them, you should look them up on the Internet and read about their services. Ask the broker any questions to make you comfortable.
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DSS Benefits |
I am on DSS benefits, is my income a problem?
Many lenders are able to accept certain benefits. The DSS benefits that can normally be used to contribute to a home loan are invalidity benefit,
long term disability benefit, carers allowances, foster care allowances, some companies accept state pension, Working Families Tax Credit and
maintenance for children from an ex partner. The lenders that can help you will be restricted, but this should not be the sole reason for a decline.
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Timeframes |
How long will it be before I get my money?
It depends on who your case is placed with. Some companies can take longer than others, for example if you have a complicated case
which includes divorce settlements and awaiting land registry to be updated etc, it can take weeks. Other companies can complete
a secured home owner loan within just a couple of weeks. You must ensure that you return any documents that are requested without delay.
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Penalties |
How much will I have to pay if I want to clear my home loan?
If your home loan is regulated (under £25,500) your redemption penalty will be controlled by FISA (Finance Industry Standards Association).
There is a complicated method of working out how much a closing balance would cost and it depends on how long you have had the home loan, how
much you borrowed, your interest rate etc. The best way to find out is to ask when you call. If your home loan is unregulated (over £25,500)
each lender will apply their own penalty.
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