Frequently Asked Questions | Homeowner Loans | Loansmart Finance

FAQ

 

You probably have a lot of questions – and that’s fine! We’ve collected and answered some of the most popular questions our customers ask. Do you have a question? Get in touch.

What is a homeowner loan?

Homeowner loans are secured against your property and are also referred to as “secured loans”. They’re only available to people that own their own home or hold a mortgage.

If you’ve been rejected for an unsecured loan (like a personal loan), a homeowner loan may be easier to obtain as your property acts as security for a lender.

How much can I borrow?

 You can borrow anything from £5,000 to £500,000. The amount you can borrow, the term and the interest rate will depend on the amount of equity you have in your home and what is affordable for your personal circumstances.

Our dedicated loan advisors will be able to assess your circumstances and set out the best solutions available to you.

What can I borrow the money for?

A homeowner loan can be used for whatever legal purpose you like. For example, you may wish to clear your credit cards and other high interest borrowings into one more affordable monthly payment. You could use the loan for home improvements, to start your own business or purchase an investment property. The choice is yours.

Do you offer long-term homeowner loans?

We can offer long-term homeowner loans of up to 30 years. However, we recommend that you take a loan over the shortest affordable term. That way, you pay the loan off quicker and pay less interest.

How long does it take to get a decision?

Once you have discussed your requirements with us, we aim to get a decision in principle to you within 24 hours.

What if I have CCJ’s, defaults or mortgage arrears?

We may still be able to help. Using our panel of lenders, we have access to lenders who specialise in helping customers in your situation. So even if you’ve previously defaulted on a loan, have CCJs or mortgage arrears, our dedicated loan advisors can help you get the loan that you need.

What is a Decision in Principle (DIP)?

Before applying for a homeowner loan, we’ll need to obtain a decision in principle from the lender. A decision in principle confirms that a lender is prepared to lend to you. The decision in principle assesses if you can afford the loan amount you need. This is based on your income and outgoings (and other factors), your credit score and the lender’s lending criteria.

Once you have a decision in principle and the lender confirms they’re willing to lend you the amount you need on an initial basis, we can then submit your full application form.

Is there any independent advice I can seek before making my decision?

If you feel as though you are struggling with your debts, The Money Advice Service is an independent service set up by the Government and they offer free, impartial advice. They can be contacted on 0300 500 5000 or you can visit their website here.

Is my application confidential?

Your application will be treated in the strictest confidence. We’ll never contact your employers, banks or any other third party without your permission.

Which lenders do you deal with?

We have access to a wide range of lenders through our panel lenders including some of the major banks, building societies and financial institutions. This enables us to assess the most suitable option for your circumstances.

We’re open and transparent about who our lenders are. If you want to see our panel of lenders, just ask! Your dedicated loan advisor will be happy to send this across to you.

 

Will I need to pay for any costs upfront?

No. We’ll cover all valuation and reference costs. You’ll be charged a broker fee by us for arranging your homeowner loan, but this is added onto your total loan amount and paid to Niche Financial Solutions LLP by the lender upon completion of your homeowner loan.

What happens after I’ve applied?

We’ll contact you over the phone to discuss your requirements and match them with the best solution using our panel of lenders. You’ll also get a friendly and dedicated loan advisor to guide you step by step through the process. Applying is free and you’re under no obligation.

How do I apply for a homeowner loan?

It couldn’t be easier! Simply complete our quick online form or call our dedicated loan advisors on 08008021003.

How do I calculate my credit rating?

Your dedicated loan advisor can help you calculate your credit rating using information you provide. This won’t leave a footprint at the enquiry quoting stage and doesn’t affect your credit score.

Do I need to own my own home to obtain a homeowner loan?

Yes. You need to be a homeowner to obtain a loan. That means you own your home with a mortgage or you own your home outright.

I’m self-employed – do I need to provide up-to-date accounts to verify my income?

Yes. Most lenders accept SA302’s or a simple letter from your accountant to verify your income.

FAQ

FAQs

You probably have a lot of questions – and that’s fine! We’ve collected and answered some of the most popular questions our customers ask. Do you have a question? Get in touch.

What is a homeowner loan?

Homeowner loans are secured against your property and are also referred to as “secured loans”. They’re only available to people that own their own home or hold a mortgage.

If you’ve been rejected for an unsecured loan (like a personal loan), a homeowner loan may be easier to obtain as your property acts as security for a lender.

How much can I borrow?

 You can borrow anything from £5,000 to £500,000. The amount you can borrow, the term and the interest rate will depend on the amount of equity you have in your home and what is affordable for your personal circumstances.

Our dedicated loan advisors will be able to assess your circumstances and set out the best solutions available to you.

What can I borrow the money for?

A homeowner loan can be used for whatever legal purpose you like. For example, you may wish to clear your credit cards and other high interest borrowings into one more affordable monthly payment. You could use the loan for home improvements, to start your own business or purchase an investment property. The choice is yours.

Do you offer long-term homeowner loans?

We can offer long-term homeowner loans of up to 30 years. However, we recommend that you take a loan over the shortest affordable term. That way, you pay the loan off quicker and pay less interest.

How long does it take to get a decision?

Once you have discussed your requirements with us, we aim to get a decision in principle to you within 24 hours.

What if I have CCJ’s, defaults or mortgage arrears?

We may still be able to help. Using our panel of lenders, we have access to lenders who specialise in helping customers in your situation. So even if you’ve previously defaulted on a loan, have CCJs or mortgage arrears, our dedicated loan advisors can help you get the loan that you need.

What is a Decision in Principle (DIP)?

Before applying for a homeowner loan, we’ll need to obtain a decision in principle from the lender. A decision in principle confirms that a lender is prepared to lend to you. The decision in principle assesses if you can afford the loan amount you need. This is based on your income and outgoings (and other factors), your credit score and the lender’s lending criteria.

Once you have a decision in principle and the lender confirms they’re willing to lend you the amount you need on an initial basis, we can then submit your full application form.

Is there any independent advice I can seek before making my decision?

If you feel as though you are struggling with your debts, The Money Advice Service is an independent service set up by the Government and they offer free, impartial advice. They can be contacted on 0300 500 5000 or you can visit their website here.

Is my application confidential?

Your application will be treated in the strictest confidence. We’ll never contact your employers, banks or any other third party without your permission.

Which lenders do you deal with?

We have access to a wide range of lenders through our panel lenders including some of the major banks, building societies and financial institutions. This enables us to assess the most suitable option for your circumstances.

We’re open and transparent about who our lenders are. If you want to see our panel of lenders, just ask! Your dedicated loan advisor will be happy to send this across to you.

 

Will I need to pay for any costs upfront?

No. We’ll cover all valuation and reference costs. You’ll be charged a broker fee by us for arranging your homeowner loan, but this is added onto your total loan amount and paid to Niche Financial Solutions LLP by the lender upon completion of your homeowner loan.

What happens after I’ve applied?

We’ll contact you over the phone to discuss your requirements and match them with the best solution using our panel of lenders. You’ll also get a friendly and dedicated loan advisor to guide you step by step through the process. Applying is free and you’re under no obligation.

How do I apply for a homeowner loan?

It couldn’t be easier! Simply complete our quick online form or call our dedicated loan advisors on [NUMBER].

How do I calculate my credit rating?

Your dedicated loan advisor can help you calculate your credit rating using information you provide. This won’t leave a footprint at the enquiry quoting stage and doesn’t affect your credit score.

Do I need to own my own home to obtain a homeowner loan?

Yes. You need to be a homeowner to obtain a loan. That means you own your home with a mortgage or you own your home outright.

I’m self-employed – do I need to provide up-to-date accounts to verify my income?

Yes. Most lenders accept SA302’s or a simple letter from your accountant to verify your income.

© 2019 Copyright Niche Financial, All rights reserved
Registered in England No. OC349588

Niche Financial Solutions LLP
1st Floor | 3 Newbridge Square | Swindon | SN1 1HN

 t: +44 (0)800 802 1003 | t: +44 (0)1793 250 787| e: [email protected]

Loansmart is a trading name of Niche Financial Solutions LLP.
Niche Financial Solutions LLP is authorised and regulated by the Financial Conduct Authority, (FCA) 708467. We will search our panel of lenders to find the right loan for you. The overall cost for comparison is 10.69% APRC.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. (IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY).

Rates are available from 3.9% APR, variable up to 34.9% APR allowing us to assist clients with more severe credit problems. Depending on your circumstances we will charge a broker fee of up to 1% of the advance for a first charge mortgage, and up to 10% of the advance for a second charge mortgage with a minimum fee of £1,495. Currently our average fees are £1,424 for a first charge mortgage (0.8%) and £2,852 for a second charge mortgage (5.8%). We also charge an advice fee of £497. All fees will be fully disclosed at application stage and fully disclosed on your contracts. We may also receive a commission from the lender on completion and this will also be fully disclosed. (Rates and fees correct as of August 2019). Niche Financial Solutions LLP, Registered in England and Wales. Company Registration Number OC349588. Registered office: 1st Floor, 3 Newbridge Square, Swindon, SN1 1HN

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© 2018 Copyright Niche Financial, All rights reserved

Registered in England No. OC349588

Important Information: 

Loansmart is a trading name of Niche Financial Solutions LLP.
Niche Financial Solutions LLP is authorised and regulated by the Financial Conduct Authority (FCA No. 708467).

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY. THE ACTUAL RATE AVAILABLE WILL DEPEND ON YOUR CIRCUMSTANCES.

Depending on your circumstances we will charge a broker fee of up to 1% of the advance for a first charge mortgage and up to 10% of the advance for a second charge mortgage. Currently our average fees are £1495 for a first charge mortgage (0.8%) and £2994 for a second charge mortgage (5.5%). We also charge an administration fee of £497. We may also receive a commission from the lender on completion and this will also be fully disclosed.
Secured Loan rates are available from 3.74% APR variable. We also have rates up to 34.9% APR allowing us to assist clients with more severe credit problems. We will search our panel of lenders to find the right loan for you.
For secured loans the overall cost for comparison is 10.69% APRC. For Mortgages the overall cost for comparison is 4.6% APRC.
(rates and fees correct as of September 2018)

Niche Financial Solutions LLP, Registered in England and Wales. Company Registration Number OC349588. Registered office: Marlborough House, 26 High Street, Swindon, SN1 3EP.

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