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Glossary
Annual Percentage Rate (APR) - The
APR is the rate of the total charge for credit expressed
as the law requires, enabling you to compare the rates
of loan lenders.
Arrears - Unpaid or overdue debts.
Mortgage arrears are unpaid or overdue mortgage payments.
Broker - A company acting as an agent
between customers and loan lenders.
Bad Credit - Bad Credit is a credit
rating term. If you’ve defaulted on a loan or
missed a credit card payment, for example, you can easily
be labelled as a bad credit risk by financial companies.
CCJ's - County Court Judgement is the
term for a judgement made against a person or company
for debt in the county court.
Credit Referencing - A record of your
credit history that is used to help loan lenders judge
your credit worth. It shows whether you pay your bills
on time, your credit balances and whether or not you
have debts.
Debt Consolidation - Using a personal
loan to pay off all your existing debts, combining them
into one reduced monthly repayment.
Defaults - Failure to meet a financial
obligation. To default on a loan would be to fail to
make the monthly repayments on time.
Homeowner Loan A homeowner loan is another term used
for a secured personal loan, which is where your home
or property is used as collateral against the personal
loan taken out.
Loan Advisor - Loan advisors work with
a range of loan lenders. They will search and compare
different loans to find the best personal loan for your
individual requirements.
Loan Lender - A loan lender is the
company who actually lends you the money. Loan lenders
tend to be banks, building societies or financial institutes.
Mortgage - A secured loan used specifically
to buy a property.
Personal Loan A loan for personal use only, a loan that
cannot be used for business.
Remortgage - The process of taking
out a new mortgage, or changing mortgage lenders.
Repayments - The money you have to
pay back to the loan lender each month. Failure to keep
up repayments can result in your property being at risk,
or being taken to court.
Secured Loan - A loan which requires
your property to be used as security.
Unsecured Loan - A loan which does
not require any equity or security to take out the loan.
Ideal for tenants and non-homeowners.
Variable Rate - Loan A Variable rate
Loan is a loan with a rate of interest that moves up
or down in line with your lender’s basic rate
of interest.
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Car
Loan Guide
