Debt Consolidation FAQs
- Who can apply for a secured loan?
- Why a secured loan and not a re-mortgage?
- What can I use a secured loan for?
- How much can I borrow and over how long?
- I have or have had credit problems including mortgage arrears, CCJs and missed payments?
- What are the Redemption penalties?
- What interest rate will I have to pay?
1. Who can apply for a secured loan?
Anybody over the age of 18, resident in the UK and a homeowner.
2. Why a secured loan and not a re-mortgage?
Secured loans can be an alternative to re mortgaging your property. You may be tied in or have a costly redemption penalty but still want to raise money, a secured loan can help.
3. What can I use a secured loan for?
Loans are available for any legal purpose including: debt consolidation; the purchase of a new car; or home improvements.
4. How much can I borrow and over how long?
From £5,000 to £50000 and from 5 years to 25 years depending on your individual circumstances.
5. I have or have had credit problems including mortgage arrears, CCJs and missed payments?
This is not always a problem as lenders can cater for your needs, but you may be required to pay a higher rate of interest.
6. What are the Redemption penalties?
The majority of loans are now regulated by the Consumer Credit Act 1974, which means the maximum interest that can be charged on paying back the loan early is just 2 months interest. There are some exemptions to the act, including where the loan is being used for business purposes. In these cases the loan would be treated as unregulated and different redemption penalties could apply.
7. What interest rate will I have to pay?
As with most financial borrowings, the rate will all depend upon your personal circumstances. Lenders will take into account your age, income, credit history and your ability to repay the loan.
Request a free callback from our expert Financial Consultants
You need to think carefully before securing other debts against your home, since your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Debt consolidation may increase the amount to be repaid in the long term.
Request a free callback from one of our expert Financial Consultants
