What is a secured loan?

A secured loan (also known as a homeowner loan) is a loan secured against your property. Secured loans may be ideal if you want to borrow a large amount of money. They are usually used to consolidate existing credit, or to make home improvements, or fund major purchases. Because your property is provided as security for the loan, lenders see you as less of a risk and may charge lower rates of interest. However, your home could be at risk if you are unable to repay the loan.

Do I qualify for a secured loan?

If you’re a homeowner with a mortgage, then you will be able to apply for a secured loan.

Can I pay my loan off early?

Yes you can – most of our lenders have an early settlement charge of approximately 2 months’ interest on the balance of the loan at the time you want to settle. Some do charge less and so it’s important to make yourself aware of what your lender’s charges are. Some lenders also charge an “administration” or “discharge” fee when loan is paid off. Read the back of the credit agreement carefully and if you need any help, please call us!

How long does it take?

Each customer’s requirements are different and so the time taken will also be different. We aim to complete your loan 2 -3 weeks after you’ve told us you want to go ahead. You will be given a dedicated Case Manager who will be with you every step of the way and you’ll be able to track the progress of your loan 24/7 via www.myfluent.co.uk or our Smartphone App.

What can I use my loan for?

A secured loan can be used for almost any purpose.

How long can I take a secured loan over?

Because the loan is secured on your property, the lenders will allow you take it over a much longer period of time than an unsecured, personal loan which would normally be restricted to 5 years. Secured loans can be taken for periods of time between 5 and 30 years. Don’t forget that the longer you take a loan over, the lower your repayment will be, but the more you will end up paying back.

What is an APRC?

APRC stands for Annual Percentage Rate of charge and is used on lending such as credit cards, loans and mortgages. The purpose of an APRC is to show the total cost of borrowing over the period of a year and as well as interest, the figure includes upfront fees and charges. This makes it easier to compare deals like for like. However, the APRC calculation itself is incredibly complex and even those who understand the mathematics of finance sometimes struggle to understand exactly what it means. APRC is dependent on the time period for which the loan is calculated. That is, the APRC for one loan with a 20 year loan term cannot be compared to the APRC for another loan with a 15 year loan term. So when comparing two loans, you should not rely on the APRC alone, except if the loan term and amount are exactly the same. We think that the most important thing to consider when comparing loans is the monthly repayment, but you should also look at other things like default charges and the way in which interest is calculated. These comparisons can be very complex and if you need any help doing it, we’ll be happy to help you, free of charge.

Do you leave a “footprint” on my credit file?

The “soft search” that is carried out as part of your initial application out has no adverse effect on your credit file. You will see the search on your own credit file but lenders will not see it. If you decide to go ahead and take out a loan, then we will be required by the lender to make a search visible to other lenders.

What is a CCJ?

A CCJ (County Court Judgement) is issued by a County Court to a person who fails to pay an outstanding debt. An unsettled CCJ will affect an individual’s credit rating and may result them being refused credit. CCJ details remain on a person’s credit file for six years. If the debt is fully settled within 30 days of the date of the judgement, it will not be listed on the credit register.

What is Loan to Value (LTV)?

Usually associated with mortgages and expressed as a percentage, this is the loan amount in relation to the value of the property it is secured against. For example, someone wanting a £90,000 mortgage to purchase a £100,000 house would be borrowing 90% LTV.

What is a variable Rate?

A variable rate is an interest rate that can fluctuate in the future and may be is generally cheaper than a fixed rate. Lenders sometimes link their variable rates to other rates such as the Bank of England Base Rate or LIBOR. Movements in these rates would affect the rate charged on your loan. If a lender doesn’t link their rate to anything, then they don’t have to increase your rate if base rates go up, but they also don’t have to reduce their rates if base rates go down.