FAQ
Got a question? Let us help you with that.
If you are looking for finance it’s understandable to have questions, so we’ve put together some answers to common questions you might be looking for.
What is a secured loan?
A secured loan (also known as a homeowner loan) is a loan secured against your property. Secured loans may be ideal if you want to borrow a large amount of money. They are usually used to consolidate existing credit, or to make home improvements, or fund major purchases. Because your property is provided as security for the loan, lenders see you as less of a risk and may charge lower rates of interest. However, your home could be at risk if you are unable to repay the loan.
Do I qualify for a Secured Loan?
If you’re a homeowner with a mortgage, then you will be able to apply for a secured loan.
How long does it take?
Timescales for arranging a secured loan can vary depending on individual circumstances, including the complexity of the application, the information provided, and lender requirements. In some cases, it may be possible to complete the process within a few days, while more complex applications can take up to 2-3 weeks. By completing our assessment, we will be in a better position to help you to minimise the time taken.
What can I use my loan for?
A secured loan can be used for almost any purpose like debt consolidation, home improvements, car, wedding and many more.
How long can I take a Secured Loan Over?
Because the loan is secured on your property, the lenders will allow you take it over a much longer period of time than an unsecured, personal loan which would normally be restricted to 5 years. Secured loans can be taken for periods of time between 5 and 30 years. Don’t forget that the longer you take a loan over, the lower your repayment will be, but the more you will end up paying back.
What is an APRC?
APRC stands for Annual Percentage Rate of Charge. It is a comprehensive percentage rate that shows the total cost of your mortgage over its entire lifetime, taking into account both the interest rate and mandatory fees (such as broker, setup, or valuation fees). To compare loans using APRC (Annual Percentage Rate of Charge), look for the single percentage figure that combines the base interest rate and mandatory upfront or ongoing fees over the entire loan term. A lower APRC generally means a cheaper overall cost, provided you hold the loan to full maturity.
Will applying hurt my credit score?
Our Advisers work with you to find the best product and lender in line with your personal circumstances, while doing this we only use a soft credit check. A soft credit check is a non-intrusive, preliminary review of your credit report that does not impact your credit score, unlike hard searches. It is used for credit eligibility checks, quotes, and personal viewing. These searches are only visible to you and not to lenders, meaning they won’t affect future credit applications.
Once a lender and product are selected and a mortgage application is submitted to the lender, they will complete a hard credit search, which is recorded on your file and can slightly lower your score. However, this will only be a brief impact and will recover quickly as long as your mortgage payments are paid on time.
What is a Loan to Value (LTV)?
LTV (Loan-to-Value) is a percentage that measures the size of a loan against the value of the asset you are buying or own. Commonly used in mortgage. For example, If you had £60,000 left on your current mortgage and your home was valued at £100.000 – Your LTV would be 60%, meaning you own 40% (£40,000) of the asset outright and have 60% (£60,000) mortgaged.
What is a CCJ?
A CCJ (County Court Judgement) is issued by a County Court to a person who fails to pay an outstanding debt. An unsettled CCJ will affect an individual’s credit rating and may result them being refused credit. CCJ details remain on a person’s credit file for six years. If the debt is fully settled within 30 days of the date of the judgement, it will not be listed on the credit register. Beagle specialises in homeowner loans for people with adverse credit, including active CCJs. Because we are a broker with access to the whole-of-market, we can match you to lenders with more flexible criteria than the high street. Applications are assessed on an individual basis, and having an active CCJ may be considered as part of the lender’s overall assessment. While it can affect eligibility with some lender’s, it does not necessarily mean an application will not be considered. Each case will depend on the lender’s criteria and their assessment of your circumstances. Our quotation process is free, no-obligation, and uses a soft search, so it won’t affect your credit score.
What is a Standard Variable Rate (SVR)?
A Standard Variable Rate (SVR) mortgage is a home loan where the interest rate can fluctuate over time. This means your monthly repayments will rise or fall depending on market conditions or your lender’s policies. Variable rate mortgages can offer lower initial rates and often come with fewer restrictions if you want to pay off your loan early. However, if you prefer predictable budgeting, you might opt for a fixed-rate mortgage instead.
What is a Fixed Rate?
A fixed-rate mortgage is a home loan where the interest rate stays the same for an agreed period, usually between 2 and 10 years. This means your monthly repayments remain locked at that exact amount for the duration of the deal, protecting you from market rate changes. At the end of the fixed rate period, the rate will revert back to the lenders. (Standard Variable Rate (SVR) – see above section of FAQ.)
Am I committed if I apply?
No, you are not under any obligation. Applying does not mean you are committed to proceeding. Our process is designed to help people and ensure that they are given the time to understand the product we have recommended and should you not want to proceed, that is also fine. If we can give you helpful information & move you forward, we are happy.
What fees do I need to pay?
The fees that need to be paid are dependent on the lender requirements, they included but are not limited to Product fees, Valuation fees, Legal fees, Arrangement fees. The good news is that we take on most of the charges so that you only need to pay our fee which can be found in our Mortgage and Insurance Services & Costs document and if applicable an arrangement fee. You can choose to either add these fees to the loan amount or pay them upfront.
What if I have poor credit or have been refused elsewhere?
In many instances, people with poor credit find homeowner loans to be a lifeline. They can consolidate any debts that are causing problems & repair their credit at the same time. Don’t worry if you’ve been refused elsewhere, we’re specialists and will look to find a solution that others can’t. We consider all circumstances and will be able to help.