FAQ

Look at frequently asked questions and find answers based upon our previous Internet queries and replies to these frequently asked questions.

most frequently asked questions

Question
How much can I borrow.
Answer
Historically lenders consider you should not take on monthly loan repayments (with all other loans included) greater than 1/3rd of your nett monthly income or borrow more than 3 times your gross annual income if buying a home. There are some variations to this rule and usually all circumstances are considered by us and our Lenders who will then make make the final decision as to what they are prepared to offer.

Question
I am divorced can I obtain a loan secured on my property.
Answer
Being divorced if your ex partner's name exists on the Deeds of your property then they will have to agree to have their name removed from the Deeds or join in the loan application with you. Some Mortgagee's may not allow this if you have a mortgage that was in your joint names.

Question
I am separated can I obtain a homeowner loan.
Answer
Usually provided your partner joins in with the loan or agrees even if they pay nothing towards the repayments or do not now live in your home. The assumption being that their name is on the Deeds or the Mortgage. If not then our lenders would not be concerned.

Question
My Grandmother has offered her home as security. Can we take out a loan as we will be paying for it ourselves.
Answer
Your Grandmother would have to agree to the lenders holding on to the Deeds to her property until the loan is repaid. You can also insure against your failure to repay due to sickness accident or redundancy. You should seek legal and financial advice on this matter in any event as we can only comment on the lending process.

Question
If we take out a secured loan does the cheque come straight to us.
Answer
In almost all cases except where there are mortgage arrears or a second charge that must be repaid first. You then get the balance remaining if any.

Question
I get Disability Benefit can I obtain a loan.
Answer
It is not easy even if you are a homeowner or if you are a tenant but it helps if you have a second or backup source of income i.e. part time income or pension or partners earnings.

Question
How long does it take to get a secured loan paid after my application is approved.
Answer
Around 14 working days from receipt of your signed Credit Agreement. This is posted to you once your original application has been approved in principle and you have returned the initial proof of your incomes. You will be allowed an 8 day withdrawal period for loans under £25K which must be added to the time scale together with an allowance for postal deliveries so you are looking at 4 1/2 working weeks at least from when you get an 'In Principle' decision. Incomplete application forms or lost information will considerably delay this process.