FAQ - Secured Loans

1. How do you receive my application and what happens next?

We make use of a secure channel for all our loan and mortgage forms. You would fill in the form and once we receive it, one of our loan officers would then analyse your financial information. We base our decision to provide you with a loan or mortgage on factors such as your employment, what assets you have and your income category. We then start work on finding you the best suitable loan or mortgage provider.

2. How much would you allow me to borrow?

Our loan scheme could allow you to borrow up to £250,000, depending of course on how much exactly you can afford to repay every month. The least you may borrow is £10,000 and we give you ample time to repay the loan. A typical repayment period is five years, though you could pay it off over a longer period, extended up to 25 years.

3. There is little equity in my property. Do I still qualify?

Even if you may not have any equity in your property, you could still qualify with a loan with Harrington Brooks. We have an extensive list of plans with which you are able to borrow up to 125% of your property’s value. It would of course be less the value of your existing mortgage balance.

4. I want to use the money to spoil my loved ones and myself. May I?

Yes, you may! We do not place any restrictions on what you use the money for. You are in full control over it and may choose to spend it on anything you wish. Many of our valued customers use it to settle some or all of their existing debts, as this would reduce their monthly outgoing expenses to a single repayment. This would be a good idea if you are good at managing your finances, however, you could lose your property should you struggle to make repayments on your mortgage.

Another popular way to spend the money is to buy a new car or do home improvements. This could work in your favour, as the interest rate might be better than that of a personal loan or a car loan. Another bonus is that you could negotiate far better with cash in your hand!

5. What would my loan cost me?

You would have to speak to one of our consultants or use our loan calculator, as we determine the loan’s total cost by the sum you borrow and the period over which you choose to repay it.

6. What APR do you charge me?

This again depends on your personal circumstances, though the majority of our customers receive a rate that is less than 10% APR.

7. I don’t want anyone to know about my application.

That is also fine! We treat all our loan applications with the utmost confidentiality. If you do not want us to contact your employers, bank or other third parties, we won’t.

8. Would my employer need to know I am applying for a loan?

If you can produce pay slips and/or a P60, we would not need to contact them. We need your consent to contact any third party. If you struggle to find a pay slip, we might need to contact them to confirm your employment, how long you have been in their employ and what your annual salary is. They need not know the exact details of your loan enquiry.

9. The last couple of years have been difficult. Could you still help me?

We have dedicated agents who would be happy to assist anyone, especially those who really need the help. If you have had difficulty in the past, we would endeavour to help you with loans, which could, if paid promptly, boost your credit score greatly. County Court Judgements, arrears and poor credit ratings may not be the end of your financial life story. We could even offer select clients an alternative interest rate.

10. What happens if I miss a payment?

We have insurance protection on certain plans for the possibility of you becoming ill or redundant. These would be subject to your status, so you would need to ask us for full details.

11. What happens if I want a second loan a year down the line?

If that happens, you come and see us! Depending on how well you maintained your original payments, we might be able to assist you further. Give us a call as soon as you have that sneaky suspicion that you need more funds and we will gladly give you a quotation.

12. Some extra cash came my way unexpectedly. May I finish the loan earlier?

Yes, you may. This would actually be to your advantage. We will calculate the outstanding balance based on the Consumer Credit Act 1974, though it might fall outside the scope of this Act, which could mean you are subject to an early repayment charge by the lender.

13. I’m a proud business owner. Would I still be eligible?

Why not? If you could supply us with two year’s worth of accounts, we could arrange a loan, though that is not strictly true: we could assist you even if you do not have trading accounts.

14. What if I move house?

If we secure a loan on your property, it will pay itself off from the proceeds of the sale. The possibility to transfer it to your new property does exist. We can discuss this in greater detail when you want to move and advise you on your options.

15. I only recently started at my new employer. Do I still qualify?

Although we normally prefer to see three consecutive pay slips, we could still arrange a loan without these.

16. Could I still qualify even if I am a new homeowner?

That should be fine, though we might have to refer you to a private rent reference.

17. Please could you define what a secured loan is?

Secured loans are generally tied to a major asset, which could be property. one of the advantages of a secured loan is the cost factor: they are cheaper than unsecured loans. A downside of it is the risk factor: you could lose your property should you be unable to meet the monthly payments on it.

Normally, clients apply for secured loans when they need a large amount of money. These amounts could range from, for example, £10,000 upwards and could be repaid over a long period of up to 25 years.

Although you do not necessarily need to have a great deal of equity in your property to secure the loan, you should have enough to cover the loan amount. It is also possible to have more than one loan or mortgage secured on your property. You would then need to inform all lenders of additional loans against the property.

Lenders feel secure in knowing that the loan is tied to your asset, which could, if there are defaults on the payment, be claimed as compensation. Although secured loans are easy to come by, many borrowers may be wary of applying due to this fact. There is a bright side, though: lenders would normally be sympathetic should you run into difficulty, and afford you some leeway, even if only for a short while.

The benefits are self-evident: it is much easier to obtain a secured loan, the Annual Percentage Rate (APR) is usually lower than on unsecured loans and secured loans have more flexibility on their repayment plans and terms.

Normally, the loan repayments are made through regular monthly instalments. Loans that allow you to borrow and pay back at will, or flexible loans, are now more readily available than in previous years, though you could expect to get a slightly higher interest rate.

Decide if you mind whether your property would be tied to a loan when you need to choose between a secured and an unsecured loan. Even though unsecured loans are not tied to a property, you would still incur penalties for non-payment on the loan amount.

Set enough time aside to have your property valued. Secured loans could offer you a more flexible approach to solving your credit problems by consolidating all payments into a single monthly repayment.

FAQ - Debt Consolidation

1. What is debt consolidation?

Debt consolidation is the process whereby an individual pays off multiple debts by taking out a single loan over a fixed period.

2. Are debt consolidation loans secured or unsecured?

Often a debt consolidation loan is secured against an asset, which is likely to be property. There are unsecured loans available that attract higher interest rates than secured ones.

3. What would happen if I default on the payments?

Think carefully and be aware of debt consolidation loans' consequences. Should you fail to keep up repayments, you could lose your home.

4. What may I use the loan for?

You may use such a loan to pay off existing debts in part or in full. It is completely your decision.

5. Why do people need consolidation loans?

People may need to pay off one of the following: multiple credit cards and store cards; overdrafts and bank loans; hire purchase agreements; and mail order catalogue debts. Consolidation loans make it easier to pay off these debts, at a lower interest rate.

6. What is the aim of debt consolidation?

The aim of debt consolidation is to pay a reduced monthly sum to a single creditor for a longer period. This will free up some spare money.

7. How long do I have to repay the loan?

All companies have their own criteria, but generally, payments are stretched over a longer period.

8. Do I receive the money straight into my bank account?

The issuer will either make direct payments to your existing creditors, or advance the loan to you directly. You will then be responsible for paying off the debts yourself.

9. Whom can I speak to about debt consolidation?

Harrington Brooks has extensive experience in debt consolidation, which means we are well-equipped to give you the answers you are looking for. Contact us on 0808 131 0040 today.