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Financial terms and phrases explained in simple terms for our customers.
A government body responsible for the main property register for England and Wales. For a secured loan, a Land Registry search will be carried out to ensure you are the property owner and that there is nothing on the register stopping a secured loan being added (for example a charging order relating to a CCJ, or a joint owner not mentioned at the application stage!)
A type of property ownership, generally applied to flats rather than houses, which are generally freehold. If you have a leasehold you are given the right to live in your property only for a specific number of years. Final ownership is with the leaseholder, and you may have to pay an annual rent (ground rent) and be liable for charges relating to the property. This doesn’t usually affect your ability to take out a secured loan, as long as the lease has a certain number of years left to run.
A legal charge, sometimes called a legal mortgage, is a formal document that gives your lender certain rights over your property in return for the mortgage loan necessary for the property purchase. Basically, it allows them certain repossession rights if you do not meet the terms of your mortgage contract. The first legal charge will be given to the lender that gives you your main mortgage. They will then be first in line if you run into financial problems with mortgage repayments. If you borrow against your home or take out a secured loan elsewhere thereafter then this next lender will have second legal charge.
An alternative to the Bank of England Base Rate, for lenders to base their loan rates on.
Insurance where a lump sum is paid to dependants when the named policy holder dies.
A loan term is the period of time that your loan lasts for. The loan term is agreed with your lender when you apply for the loan and can last anything from 3 year to 30 years. It is also possible to arrange loans with extremely short terms (for example bridging loans).The loan term that you choose for your loan may, to a certain extent, be determined by the type of loan that you take out. For instance, many mortgages are taken out for longer periods (i.e. 25 years), whilst personal loans tend to run for shorter terms. Your loan term will also have an effect on how much you pay back for your loan overall. The longer the term, the lower the payments but bear in mind the loan will cost you more in the long run, as you will be charged interest for a longer period.
A ratio used by lenders offering loans secured on property. (The total secured on the property divided by the property value, x100). Some lenders will lend up to 125% of the property value, depending on your credit history. For people with very poor credit the maximum LTV may be much lower.
Loan Amount : £3,000.00 £4,000.00 £5,000.00 £6,000.00 £7,000.00 £8,000.00 £9,000.00 £10,000.00 £11,000.00 £12,000.00 £13,000.00 £14,000.00 £15,000.00 £16,000.00 £17,000.00 £18,000.00 £19,000.00 £20,000.00 £21,000.00 £22,000.00 £23,000.00 £24,000.00 £25,000.00 £26,000.00 £27,000.00 £28,000.00 £29,000.00 £30,000.00 £31,000.00 £32,000.00 £33,000.00 £34,000.00 £35,000.00 £36,000.00 £37,000.00 £38,000.00 £39,000.00 £40,000.00 £41,000.00 £42,000.00 £43,000.00 £44,000.00 £45,000.00 £46,000.00 £47,000.00 £48,000.00 £49,000.00 £50,000.00 £51,000.00 £52,000.00 £53,000.00 £54,000.00 £55,000.00 £56,000.00 £57,000.00 £58,000.00 £59,000.00 £60,000.00 £61,000.00 £62,000.00 £63,000.00 £64,000.00 £65,000.00 £66,000.00 £67,000.00 £68,000.00 £69,000.00 £70,000.00 £71,000.00 £72,000.00 £73,000.00 £74,000.00 £75,000.00 £76,000.00 £77,000.00 £78,000.00 £79,000.00 £80,000.00 £81,000.00 £82,000.00 £83,000.00 £84,000.00 £85,000.00 £86,000.00 £87,000.00 £88,000.00 £89,000.00 £90,000.00 £91,000.00 £92,000.00 £93,000.00 £94,000.00 £95,000.00 £96,000.00 £97,000.00 £98,000.00 £99,000.00 £100,000.00 £101,000.00 £102,000.00 £103,000.00 £104,000.00 £105,000.00 £106,000.00 £107,000.00 £108,000.00 £109,000.00 £110,000.00 £111,000.00 £112,000.00 £113,000.00 £114,000.00 £115,000.00 £116,000.00 £117,000.00 £118,000.00 £119,000.00 £120,000.00 £121,000.00 £122,000.00 £123,000.00 £124,000.00 £125,000.00 £126,000.00 £127,000.00 £128,000.00 £129,000.00 £130,000.00 £131,000.00 £132,000.00 £133,000.00 £134,000.00 £135,000.00 £136,000.00 £137,000.00 £138,000.00 £139,000.00 £140,000.00 £141,000.00 £142,000.00 £143,000.00 £144,000.00 £145,000.00 £146,000.00 £147,000.00 £148,000.00 £149,000.00 £150,000.00 £151,000.00 £152,000.00 £153,000.00 £154,000.00 £155,000.00 £156,000.00 £157,000.00 £158,000.00 £159,000.00 £160,000.00 £161,000.00 £162,000.00 £163,000.00 £164,000.00 £165,000.00 £166,000.00 £167,000.00 £168,000.00 £169,000.00 £170,000.00 £171,000.00 £172,000.00 £173,000.00 £174,000.00 £175,000.00 £176,000.00 £177,000.00 £178,000.00 £179,000.00 £180,000.00 £181,000.00 £182,000.00 £183,000.00 £184,000.00 £185,000.00 £186,000.00 £187,000.00 £188,000.00 £189,000.00 £190,000.00 £191,000.00 £192,000.00 £193,000.00 £194,000.00 £195,000.00 £196,000.00 £197,000.00 £198,000.00 £199,000.00 £200,000.00 £201,000.00 £202,000.00 £203,000.00 £204,000.00 £205,000.00 £206,000.00 £207,000.00 £208,000.00 £209,000.00 £210,000.00 £211,000.00 £212,000.00 £213,000.00 £214,000.00 £215,000.00 £216,000.00 £217,000.00 £218,000.00 £219,000.00 £220,000.00 £221,000.00 £222,000.00 £223,000.00 £224,000.00 £225,000.00 £226,000.00 £227,000.00 £228,000.00 £229,000.00 £230,000.00 £231,000.00 £232,000.00 £233,000.00 £234,000.00 £235,000.00 £236,000.00 £237,000.00 £238,000.00 £239,000.00 £240,000.00 £241,000.00 £242,000.00 £243,000.00 £244,000.00 £245,000.00 £246,000.00 £247,000.00 £248,000.00 £249,000.00 £250,000.00
Repayment Period : 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years 11 years 12 years 13 years 14 years 15 years 16 years 17 years 18 years 19 years 20 years 21 years 22 years 23 years 24 years 25 years 26 years 27 years 28 years 29 years 30 years
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