We want to make understanding secured loans as easy as possible. We hope these definitions below help to explain simply what certain secured loans terms mean.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Information provided by a consumer disclosing their personal details and information about their current financial situation. This information is used by us as a brokerage to make an informed assessment.
This means the 'Annual Percentage Rate' and tells you the rate of interest that will be charged on your secured loan taking into account the total cost of interest and other charges e.g. legal fees.
Payments not made by a borrower on time for secured loans, personal loans, credit cards, store cards and other loans. This is usually described in terms of money or missed payments.
Used to describe a poor credit rating. This happens when borrowers make loan or other repayments late, borrow more than they can afford to repay, are/have been declared bankrupt, or have CCJ's against their names.
A legal status for those who are not able to repay their debts.
Brokers are intermediaries who arrange both unsecured and secured loans for applicants with various lenders. Brokers often have a panel of different loan lenders with which they can place the applicant's loans. They may be tied to a particular lender or be independent.
The act of bringing together two or more parties in exchange for a fee or commission.
A form to help you work out your incomings and outgoings, work out how much you need to borrow for your secured loan, and work out how much you can afford to pay back on your secured loan.
A questionnaire completed by a lender/bank or building society to gather details about a secured loan applicant's mortgage and property.
See Commercial Loan.
County Court Judgement. An order of a court against a debtor to pay money owed.
Security or Equity, e.g. on your home.
A secured loan used for business purposes.
A percentage of a secured loan which a broker might receive for placing a secured loan with a lender.
Refinance of outstanding debts into one new agreement such as a secured loan, normally at a reduced interest rate.
Credit is the means by which consumers can get immediate benefit of goods or services upon the promise of payment at a future date.
A contract between a borrower and a lender detailing terms and conditions under which money was lent. This is a legally binding document.
Companies used by secured loan brokers/providers to make assessments on individuals wishing to borrow from them. They keep records on the existing credit of businesses and consumers.
Money owed to a lender or other financial institution.
When an individual fails to keep up with mortgage or secured loan payments that they have agreed to pay they are said to have defaulted.
See Loan Broker.
The type of interest rate that is fixed for the entire term of the secured loan. This kind of rate means that you have piece of mind that you will know exactly what your repayments are over the term of the secured loan. If used to describe a mortgage and interest rate is generally only fixed for a specified term. After this term the rate will usually revert to the lender's standard variable rate.
When someone owns land or property outright. Property deeds will identify whether a property is held lease or freehold basis.
The term used when the customer has purchased their home, normally with the aid of a mortgage.
Independent Financial Advisor.
A Leaseholder holds the title to land/property for a predetermined amount of time. E.g. if you are renting you will be the leaseholder for that period of time.
The actual company that provides you with your loan/mortgage.
An amount of money borrowed from a bank or other lender by an individual.
Loan to value, this is the size of the secured loan or mortgage as a percentage of the value of the property or price being paid for the property e.g. A property valued at £100,000 with a mortgage of £90,000 would have an LTV of 90%.
The actual company that provides the finance to satisfy a secured loan or mortgage request.
See Application.
An intermediary who identifies, and places, customers requiring a secured loan or mortgage etc. with a company (Lender) able to provide it. The broker often carries out the administration to do with processing the loan.
A device we have developed to help you work out what your secured loan repayments might be.
The reason why someone would want to borrow money. E.g. To pay for a new car.
A loan to purchase a home where the property is used as security in the event of non-payment of the mortgage.
The situation where the amount owed on a mortgage is more than the value of the property.
Where you have numerous CCJ's or Mortgage Arrears.
Sometimes informally known as a mortgage offer. This document details the terms and conditions upon which the lender is prepared to make a mortgage or secured loan. The applicant must sign and return a copy of the offer indicating their acceptance of the proposed terms.
Payments not made on borrowing when agreed that have occurred in the past, normally within the last 12 months.
Insurance which can be taken with a secured loan to help borrowers to make loan repayments in the event of redundancy, illness or disability.
A form on which consumers disclose only very basic personal details such as the name, contact numbers, e-mail address, house number/name, postcode and roughly how much they want to borrow. This information is then used by us as a secured loan broker to contact the consumer to go through a more detailed secured loan application.
When a secured loan is redeemed (paid off) early, either in full or in part, many lenders will charge a fee. This particularly applies to Fixed, Discounted or Capped rate secured loans or mortgages.
Another secured loan/mortgage taken out by a borrower to replace another loan secured on the same property.
A loan that needs to be secured on assets, e.g. cars, houses etc. These assets will be at risk if the borrower does not keep up secured loan repayments as agreed.
If a loan is taken out with assets as security, then the borrower agrees to the lender creating a charge over the property. Should the borrower not make repayments as agreed the lender will be allowed to reclaim the assets used as security as compensation. Security used can include houses, cars, and businesses.
When taking a secured loan or mortgage, the security address is the address of the property which is being offered as collateral for the secured loan. Where property is offered as security in this way, lenders are generally prepared to offer more flexible terms and lower interest rates.
Lenders that operate self certification schemes allow applicants to confirm how much they earn by "Self-certifying" their income. For self employed applicants there is no need for a full 3 years audited accounts to be provided.
Where you have CCJ's or Mortgage Arrears.
The amount needed to repay the secured loan during the contracted term.
A secured loan made available to people who are unable to borrow money from normal lending sources, such as Banks and Building Societies.
A person who does not own a home, but instead pays rent to a landlord. This includes living with parents.
The length of time that a secured loan will be repaid over.
Documents relevant to the present and/or past ownership of a property. They outline names of owners and details of institutions that have registered a charge against the property. They are usually held by the first mortgage lender whilst their charge remains in existence.
The process by which a potential secured lender or brokerage determines the ability of the applicant to repay the loan they require.
A secured loan that does not require any security. This may be because the borrower has a good financial position or credit rating. Such borrowers may be classed as 'Clean'.
A rate of interest which may vary up or down during the lifetime of a loan. The circumstances causing any change are outlined in the loan conditions.