Hot Topics

What is a secured loan?
Secured loans enable homeowners to borrow capital against the value of their property. This means that you are effectively using your property to guarantee the loan. If you cannot keep up with the repayments, your home is at risk.
How quickly can I get the decision?
More and more loans companies are selling themselves on how quickly they can make a decision. Many promise an instant decision, however they will still have to carry out a variety of checks to verify the information you have provided in your application.
Should I get Personal Loan Payment Protection Insurance?
When you apply for a loan, you will be asked at the initial stages if you want personal loan insurance to be included in the agreement
What is the maximum value of the secured loans I can have in relation to the value of my property (LTV ratio)?
The industry average for the LTV ratio (Loan to Value Ratio) is 75%. This means that if your property is valued at £100,000 – you will be able to borrow £75,000 against it. It may be possible to get more than that – for example 85% or 90% - however you will need an excellent credit history and must in general be considered a ‘no risk’ customer by the loan provider.
Can I cancel my loan application if I decide not to go ahead for any reason?
If you decide you want to cancel your loan application once you have made it, you can do so within a certain period of time set by the loan company.

Should I get Personal Loan Payment Protection Insurance?

When you apply for a loan, you will be asked at the initial stages if you want personal loan insurance to be included in the agreement.

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This will increase your payments by a noticeable amount, however it does mean that if you are unable to meet the monthly repayments, you may be covered by your insurance scheme, thus giving you and your family peace of mind that your payments will still be met.

A Loan insurance policy covers your personal loan if you are unable to work because of illness, accident or disability, or you become involuntarily unemployed. Different loan insurance providers offer different types of cover, so you can choose just accident and sickness, or just unemployment cover, for example. The policy covers your usual monthly repayments that you make to your lender, however most loan insurance polices stop paying out after a set period, normally 12 months. However that depends on the policy, others carry on paying until the loan is paid off and not just for a limited period.

It is very important that you read the loan insurance policy document carefully to make sure you understand exactly what you’re covered for, and more importantly what’s not covered. When you buy the insurance policy they should explain the important cover details and draw your attention to any important or unusual points, however, you cannot depend on this.

When your loan insurance policy starts, you won’t normally be able to claim straight away – you may have to wait a few weeks or a month or two depending on the policy terms and conditions.

The alternative to personal loan insurance is Short-term Income Protection Insurance – this protects you in the advent of sickness, accident, death or unemployment. Many people use this type of insurance to cover rent, loan repayments and household bills. You may be able get a cheaper deal by seeking out your own income protection policy rather than accepting the terms of the insurance offered by your loan provider.

Apply now For Short Term Income Protection

 

Risk Warning
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.
Think carefully before securing other debts to your home.