Hot Topics

What is credit scoring?
Most of the major credit card companies use their own credit scoring systems – normally but not always in conjunction with a credit rating from a credit reference agency.
What can I do if I think information held by a credit reference agency on me is incorrect?
If you have been turned down for a loan and you cannot see any reason why, then you can contact the credit reference agency to see your personal credit report.
What does it mean if my payment protection insurance includes cash back?
Some lenders offer a cash back scheme on payment protection insurance – by refunding all or part of the insurance premium after a certain time has elapsed.
Can I defer payment?
This depends entirely on the specific agreement you have made with the loan company – and you must read your terms and conditions carefully to see if you are entitled to defer your payments at any point.
How much can I reduce my monthly payments by with a debt consolidation loan?
It really depends on how much you owe. In some circumstances you may be able to reduce your total monthly repayments by as much as 75% - simply by consolidating your debts into one single payment.

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.

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If you want to take out a secured loan against your home, you will have to have an appraisal to work out the value of the property. On this figure the lender will decide the maximum amount you can borrow against the property.

Especially in the current environment where house prices are rising and rising, homeowners are getting the chance to borrow large sums against their house as the value of their property soars. The risk here is that you will end up in negative equity. This happens when house prices fall, and lenders find that they have borrowed more than the value of their house. As a result, each month you would be paying interest on a loan greater than the real value of your property. This only becomes a real problem when moving house, as you will owe thousands of pounds more than your home is worth.


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.