Personal Loans & Homeowner Loans FAQ's
With an unsecured personal loan, you can normally borrow the money over a period from 12 months to 7 years, although some firms will lend for a short period of 6 months and others will allow you to repay over 10 years. Most lenders will insist that you take out a direct debit for the repayments.
Interest rates are generally fixed for the duration of the personal loan, which means you know exactly how much you will repay each month. That means if you are offered a loan at 6.9% APR, you will be charged that rate of interest for the entire repayment period, regardless of any rise or fall in the Bank of England base rate. The important number to look for is the APR, the annual percentage rate. The higher the APR the more you will have to pay in interest charges. Homeowner Loans on the other hand usually have a variable interest rate, moving in line with the Bank of England base rate.
If you want to repay your loan in full before the end of the repayment period, lenders will normally charge you what is known as an early repayment penalty. For example if you borrow £5,000 over 5 years and at the end of the 2nd year you want to pay back all the money outstanding, lenders would normally charge a penalty of no more than two months interest. The penalty charge is to compensate the lender for the reduced amount of money they would have made in interest as a consequence of you repaying the loan early.
PPI is optional insurance that covers your monthly loan repayments if you cannot work because of accident, sickness or unemployment. This protection is often expensive and you should think carefully whether you really need this cover or not.
Lenders will check your credit history to make sure that you are a good risk and do not have a history of bad debts and defaults on loan repayments. To do this they will check your credit history with a credit reference agency such as Experian or Equifax. A poor credit history will not necessarily prevent you from getting a loan, but you will probably will not have access to the lowest interest deals and will have to pay a higher rate of interest. If you are self-employed or are on a short-term contract you may find it more difficult to be accepted for the most competitive loans deals in the market.
1. We may collect personal information about you from sources (if available) including:
(a) when you contact us with an enquiry or in response to a communication to us;
(b) from publicly available sources such as the electoral role;
(c) from referencing agencies that may verify your identity, in accordance with the money laundering regulations
(d) when you agree to buy a product/service from us.
2. You'd expect us to be concerned about the confidentiality and use of your personal information, and we are. We will use your personal information for purpose including:
(a) to help provide quotations, administer your policy and for compliance reviews where we have a duty to do so. We may transfer our rights and duties under any agreement in execution of your business;
(b) to keep in touch with you so that you hear about any special offers and new products that may be of interest to you. Should you have come to us through and intermediary or introducer, they sometimes ask us to confirm who has taken up a policy from us. This allows them to monitor our performance and customer service. Generally most communication is by telephone or e-mail.
(c) from time to time, we would like to tell you about special customer promotions provided by third parties. Rest assured, we will do our very best to ensure these match your likely interests and requirements. Again, most communication is by telephone or e-mail.
(d) to help administer accounts, products and services for which you are a customer;
(e) to help detect fraud or loss
3. Information you supply may be used by insurance companies who provide services to us for the purpose of administering and processing you application.
Your will be stored on computer, but will not keep them longer than necessary.
For our joint protection and staff training , some calls may be recorded and/or monitored. This is in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
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