Homeowner Loan Information: FAQ's and Jargon Index

1. How much can I borrow?
Our loans start at £5,000 and go up to £500,000.
It all depends on your available income and the amount of equity in your property.

2. What can I use the money for?
You can use the money for virtually any purpose, whether it be a car, home improvements, a holiday or to pay off your existing credit commitments.

3. Can I protect my repayments if I am ill or made redundant?
Yes, we offer an optional accident, sickness and redundancy package with all our lenders for your total peace of mind.

4. What if I want to settle the loan early?
You can do this at any time. The balance outstanding will be calculated and a rebate given on the outstanding interest in accordance with the Consumer Credit Act 1974.

5. Is my application confidential?
Absolutely. We will not contact your employers, bank or other third party without your prior written authority.

Adverse Credit | APR | Arrears | Bad Credit | Bankrupt | Black Listed | Bridging Loan | CCJ or County Court Judgment | Debt Consolidation | Defaults | Debt | Equity | Impaired Credit | Interest rate | Negative Equity | Non Status | Personal Loan | Poor Credit | Secured Loan | Security | Status | Self Employed | Tenant Loan | Unsecured Loan | Wedding Loan

• Adverse Credit
  This term is used to describe Credit Problems due to a poor credit history. The borrower may have CCJ's, Mortgage Arrears and other credit debt repayment. Abusing credit or failing to meet credit repayments leads to Adverse Credit.
• APR
  APR or Annual Percentage Rate is the actual cost of interest on a loan/mortgage and takes into account the amount of interest you will pay and the term of the loan/mortgage. So the higher the APR the more you will pay, the lower the APR, the less you pay. This is the easiest way to compare loans to gain the best rate for you.
• Arrears
  Mortgage Arrears is used to describe missed, late or under paid mortgage repayments. If you stay in arrears you are likely to end up with a County Court Judgment or CCJ. This can also be described as defaulting on your mortgage or Mortgage Defaults. A limited number of lenders will consider lending credit to people with previous credit problems.
• Bad Credit
  This another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to a Bad Credit Rating. Bad Credit is more of an American term with the UK more commonly using Poor Credit.
• Bankrupt
  This occurs when a debtor is unable to pay their debts. The lender(s) or creditors move to secure what monies they can from any existing assets (property) held by that person. All property is then administered by the official receiver.
• Black Listed
  All your credit history will be stored on databases by credit reference companies. A lender will check these to find out your credit status. If you have a severe credit history and your record will be black listed to note severe risk. Some lenders will still lend on this but the interest rate will be high until you can improve your credit history.
• Bridging loan
  This is a short term loan provided by a bank or building society which covers you if you need to pay for your next home, while still waiting for the money to come through from the sale of your current home. If you do require one of these, you must ensure that the funds to repay the loan will be in place when the loan period expires.
• CCJ or County Court Judgment
  If you have not made payment on any debt you have then you will be taken to Crown Court. If the debt isn't satisfied then a decision or judgment made in the County Court, normally for the non-payment of that debt will be registered on your credit file as a CCJ. If the debt is paid or satisfied and a satisfaction certificate obtained it will be noted on your credit file. Having unsatisfied CCJ’s will seriously effect your credit rating and limit the lenders available to you.
• Debt Consolidation
  To consolidate your debts means instead of several debts where you are struggling to meet all the repayments you have just one manageable debt with a repayment you can afford. However you are actually increasing your debt and paying it over a longer period allowing lower monthly repayments
• Defaults
  If you have defaulted on a loan or mortgage it means that you are more than 30 days behind the date your repayment was due. This will be marked on your credit record and would lead to a CCJ if no payment was received or received very late.
• Debt
  Money owed to a lender by a borrower.
• Equity
  This is the difference between the amount you owe on your current mortgage and the current value of your property. This amount can be used in a remortgage to allow money for home improvements, a new car, holiday of a lifetime or reduce your monthly premiums.
• Impaired Credit
  This refers to the credit rating of an individual who may have CCJs or maybe behind with payments to personal loans or a mortgage. This phrase is also applicable to someone who has been declared bankrupt.
• Interest rate
  This is the percentage of your loan that a lender charges you each year for the privilege of borrowing money. The prevailing level of interest charged by lenders depends largely on the economy and the Bank of England base rate. If the Governor of the Bank of England and the Monetary Policy Committee are worried about the economy overheating and causing inflationary pressure, they may raise interest rates.
• Negative Equity
  This means the value of your property is lower than the amount you owe on your mortgage or secured on it. This will be a problem if you want to move or maybe considering either a Remortgage or a Secured Loan.
• Non Status
  This another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to being classed as Non Status rather than Status.
• Personal Loan
  A personal loan is a term used to cover secured loans and unsecured loans. This is a loan taken out by a person or persons hence the name Personal Loan.
• Poor Credit
  This another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to a Poor Credit Rating. Poor Credit is more of an UK term with America more commonly using Bad Credit.
• Secured Loan
  This is a Personal Loan that uses equity in your home for security to allow better interest rates than being an Unsecured Loan. You can use this loan for debt consolidation or home improvement. However, your home is at risk if you fail to keep up repayments secured on it.
• Security
  When a loan is taken out it is 'secured' on a property, the borrower agrees to the lender creating a charge over the property; the deed makes reference to the rights and obligations of both parties as detailed in the Legal Charge. Thus the property is known as the 'security'.
• Status
  The credit-worthiness of a potential borrower.
• Self Employed
  An individual who works for himself/herself. This will include partners in businesses and professional practices such as lawyers.
• Tenant Loan
  A Non-Homeowner or Tenant will take out an unsecured loan because they have no home to act as security for the Loan. This is a Personal Loan for Tenants and Non-Homeowners.
• Unsecured Loan
  A Non-Homeowner or Tenant will take out an unsecured loan because they have no home to act as security for the Loan. This is a Personal Loan for Tenants and Non-Homeowners. Interest Rates are usually higher than Secured Loans but 4homeowner.co.uk aims to find you a competitive rate Tenant Loan or Unsecured Loan.
• Wedding Loan
  This can be a Secured Loan or Unsecured Loan if you're a Homeowner or a Tenant Loan if you're a tenant or Non-Homeowner. An average church wedding with all the trimmings can cost about £10,000. A wedding loan can be used to make your or your daughters special day a memorable one.
  
  

Now you've read all of the above the only part left before we get you a competitive Homeowner Loan quote is completion of our online Homeowner Application Form!
You are under NO Obligation and the quote is FREE.

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