What is a secured loan?
A secured loan or a ‘home owner loan’ is often a large amount provided to fund major purchases such as consolidating existing credit or funding home improvements. It is secured against your property, therefore your home may be at risk if you are unable to repay the loan. However, there may be lower interest rates chargeable overall due to the property being provided as loan security.
Am I eligible for a 1st Stop Home Loan?
In order to apply for a 1st Stop Home Loan you must be a homeowner with an existing mortgage. Your mortgage is known as the first charge on your property and a loan from 1st Stop is secured by way of a second charge. Check our 1st Stop Home Loans eligibility to see further criteria.
What is an APRC?
APRC is a term you will see on lending products; it stands for Annual Percentage Rate of Charge and is used so that the customer can understand a total percentage chargeable, based on their total amount borrowed. The representative APRC is an amount calculated as an example dependant on the amount borrowed.
What is a variable rate?
A variable rate is an interest rate that may fluctuate over time; the benefit of this rate is if the underlying interest rate declines, the borrower’s interest payments also fall. This rate is generally cheaper than a fixed rate. Should the rate increase during the agreement you may pay back more over the term of the loan.
How much can I borrow?
Loans offered will be subject to an assessment of your credit worthiness, affordability of the loan and your ability to make the necessary repayments without causing you financial difficulty. Our Home Loans are available from £5,000 to £50,000.
How do I repay my loan?
1st Stop Home Loans will collect payments from your debit card or by direct debit on the agreed repayment dates.
Are you a responsible lender?
Yes, 1st Stop Home Loans are regulated by the Financial Conduct Authority. We are committed to lending to our customers responsibly. We do not want to put customers into unsustainable debt by lending them money that they can’t afford to repay, so please think very carefully before applying. If you have any doubts over whether you’ll be able to repay the loan as promised, please do not apply.
Can I settle my loan off early?
Yes, you are able to repay your home loan early by letting us know by phone, email, or letter stating the earlier date that you wish to settle.
What happens if I experience financial difficulty?
We will always act sympathetically to customers who are experiencing financial difficulties.
If you are unable to repay your 1st Stop Home Loan we ask that you contact us as soon as practically possible; ideally you should do this before your repayment becomes due. By contacting us at an early stage this may help to avoid default charges being incurred and prevent our formal collection procedures starting. We will always show forbearance and seek to assist you by agreeing alternative repayment arrangements.
You should also be aware that failing to repay on the agreed date may have a negative impact on your credit score as we provide payment performance information to credit reference agencies.
To discuss any financial difficulties in relation to your 1st Stop Home Loan, please call: 01253 603951 – we ask that you communicate with us honestly and we will do our best to help you.
Can I use a Home Loan as an alternative to a re-mortgage?
A secured loan may also be a good alternative to a re-mortgage if, for example, you have a low interest mortgage which you don’t wish to move away from but need additional funds.
Can I consolidate existing debt?
Consolidating existing credit with a secured loan means you will have a single monthly repayment and will know exactly when this is. You may also find that you can reduce your monthly outgoings if you are consolidating debts that have a higher interest rate than the secured loan you take. However, by consolidating your debt, you may increase the amount you pay back overall therefore extending the repayment period of your debts.
Is my home at risk if I can’t pay back my loan?
Yes – your home is always at risk with any loan or mortgage secured against your property. Your home may be repossessed if you don’t keep up your repayments.