Frequently Asked Questions (FAQs) and Secured Loan Terminology

FAQs / Terminology

12th September 2007

Frequently Asked Questions (FAQs)

Q: Can I apply for a loan if I have an adverse credit history?

A: Yes. Some lenders specialise in lending to customers with poor credit histories. Here’s what it means for you:

you may have to provide more detail in your application – the lender will want reassurance that you can pay the money back or you have assets to support the loan. They may ask for detailed information about your outgoing and incoming finances
you may be charged higher interest
your choices will be limited – not all lenders are willing to lend to people with poor credit history

Just let us know if you have a poor credit history so we can find suitable loans for you.

Q: How do I work out my property value?

A: There are a few ways you can estimate the value of your property:

Research - Find out how much other, similar properties in your area have recently been sold for. If you don’t know, look in an estate agent window or your local paper to see the asking price for properties that sound similar to yours
Do the maths - How much did you pay for your property? If you bought it recently, you can look at figures for how the property market has grown, and work out how much the value of your property has grown
Get a professional opinion – Pay for a surveyor to value your property. You can also get an estate agent to value it, but they generally over estimate the value, to encourage you to sell and because the asking price is normally more than the buying price

Q: What do I include in the annual salary of the household?

A: Just include the joint income of the homeowners. If you are the sole property owner, then just provide your salary. You don’t need to include the income of any lodgers or children.

Q: What is Payment Protection Insurance (PPI)?
A: Payment Protection Insurance (PPI) covers your loan repayments in the event of your inability to pay because of an accident, sickness or unemployment.
The amount you will be charged varies, depending on the lender, the loan amount and whether it’s a single or joint application.

Q: How long does it take to apply for a Secured Loan and how long to get the cheque?
A: It usually takes about two weeks for a successful secured loan application to be completed and the cheque to follow a few working days later.
If you are using a secured loan for deby consolidation, then some lenders will pay off the debt providers directly.