Frequently Asked Questions

No. All joint mortgagees have to be party to the agreement.

Some lenders will consider lending more than the available equity, subject to other considerations as to the customers ability to repay.

Many brokers advertise on the internet as well as in other popular media.

You can do this either by applying direct to a specialist lender or as is more usually the case, through a secured loan Broker.

You will note from the What are the processes involved question, that there is a legal process which has to be followed to allow consumers time to consider the offer.No one can bypass this requirement.Whilst you should be wary of advertisements which make claims such as Your money paid out in less than two weeks, a loan could be completed within that time frame but is more likely to take around 3 to 4 weeks on average.It is important to realise that the broker will be working very hard on your behalf to complete the deal.But this is a two way transaction.Almost all delays are as a result of inaccurate or missing information from the customer.The more precise and timely you are in providing what the broker needs, the quicker the loan can be completed.

Legally there is no limit, however, there are regulatory requirements for Responsible Lending.Whilst lenders will have varying criteria, they must give full consideration to the affordability of the loan and the borrowers ability to repay it.Because the loan will be secured on your home, which could be repossessed by the lender in cases of serious default you and any joint applicant will be required to provide evidence of income and outgoings.Your home which already has a legalcharge placed on it for your first mortgage, will need to be valued by an approved Surveyor (arranged by the broker) to establish whether there is sufficient equity available for the amount of borrowing required (See what is equity).

Because of the security for the lender, you will generally find that larger sums of money can be borrowed on a secured loan and often at considerably lower interest rates and over longer periods.

A secured loan is where the lender requires the customer to offer them some form of security rather than just a promise to repay.The security in the case of most loans will be the borrowers home and for this reason secured loans are often referred to as second mortgages.

Equity is the difference between the market value of your property and the amount that is owed on a mortgage or mortgages.To calculate the equity available in a home here is an example:The property is valued at 200,000 and the outstanding mortgage amount is 125,000.200,000 less 125,000 is 75,000.The available equity is 75,000.

The Loan to Value ratio, or LTV, is how equity as a percentage of the house value is expressed.In the example What is meant by equity?, the outstanding mortgage amount of 125,000 is 62.5% of the value of the house at 200,000 and the LTV therefore 62.5%.A lender prepared to offer for example LTV of 85% is prepared to lend up to a further 22.5% of the house value, taking the total outstanding borrowing to 170,000, with equity remaining of 15%

Whilst some brokers offer the services of a representative who will make a visit by appointment, the majority of loans are completed perfectly satisfactorily at distance by telephone and post.Whether you deal in person with a broker or at distance, all are required to follow the same rules and regulations with regard to the process.These rules are laid down in the Consumer Credit Act 1974, as amended by the Consumer Credit Act 2006.The law requires that consumers who are considering taking out a secured loan be given time to reflect on any offer.This is known as the consideration period, during which no one associated with the lender or credit broker is permitted to contact you in any way.Having contacted a broker of your choice, you will be asked questions sufficient for them to establish in principle whether you are likely to qualify for the loan amount you require and the lender able to provide the best terms subject to your circumstances.The broker will then send full application details to you by post or, subject to receipt of your signed letter of invitation, these will be brought to you by a representative who will be able to assist you to complete them.You will then be given a copy of the loan offer, usually posted to you but may be handed to you in person by the visiting rep.It is from this point that consideration begins, during which you are free to contact the broker but he must not initiate contact with you. After seven clear days have elapsed you will be sent what is known as the signable copy of the loan agreement.You are then allowed a further seven clear days before the broker can legally make any contact with you.However you may sign and return the agreement at any time after receiving it; upon receipt of which the broker may then resume contact with you.Subject to the completion of any outstanding matters, such as the survey of your home, the broker will send the agreement to the lender for completion.The lender will telephone you to confirm certain information for security purposes before then signing the agreement. At this point the loan is completed and your money will be paid into your bank.

This means that the interest rate may go up or down during the lifetimeof the loan.It does not mean that the rate will automatically go up and down with the Bank of England Base rates.

The APR reflects the true cost of the loan.The APR includes all the interest together with any other charges.This makes it easier for you to compare the true cost of borrowing.

Any expression of dissatisfaction should be made in the first instance to the Company against whom you have the grievance.It is required to deal with your complaint in accordance with its own published procedures.If you remain dissatisfied with the Firms response, you may be able to have the case referred to the Financial Ombudsman Service (FOS).The Company are obliged to tell you if this is the case.

Whereas a lender can only ever recommend a loan from their own range of products, a broker will be able to source credit from a range of lenders.Many FISA Lenders make their products available only through brokers.This keeps their own costs down and enables them to offer loan products through brokers at competitive rates.

As mentioned elsewhere in these FAQs, (see Is there any benefit in taking out a secured loan compared to an unsecured one?)secured loans, usually for higher amounts than unsecured products, generally have lower interest rates and can be taken out over longer periods.This means that existing credit can be paid off leaving you with a single more manageable loan.However, it is important to note that the consolidation loan will generally be of a longer duration than the old loans and you will pay more in interest over the longer term.