SMART - Quotes
Frequently Asked Questions

Q:

What is the best way of comparing loans?

A:

There are a number of factors that need consideration when applying for a loan, but the single most important factor is the loan A.P.R.

Q:

What is the loan A.P.R ?

A:

The A.P.R. on a loan represents the true cost of a loan to you. The A.P.R takes into account the loan interest rate and also any extra charges and makes it easier to compare loans when borrowing.

Q:

What happens if I can afford to pay the loan off early?

A:

If you wish to repay the loan early you have to ask the lender for a redemption or early settlement statement. This will provide information on how much you have to pay to redeem the loan. You will not ( unless the loan only has a few months left ) be required to pay all of the loan interest due over the remaining term. The method of calculating the loan settlement figures varies, of loans up to £25,000 the maximum you will repay is calculated using "the rule of 78".( this being a complex calculation governed by the consumer credit act 1974 ).

Q:

I have a bad credit record, will I still be able to get a loan?

A:

Usually, in the case of a secured loan…Yes…The terms being offered, however, will vary according to how greater a risk you appear to be. If you have CCJ's, Defaults or Mortgage arrears, you must expect to pay a higher rate of interest. The vast majority of lenders use one of two major credit checking companies and these companies hold information just about the whole adult population of Britain so if you, or someone at your address has defaulted, got a county court judgement or otherwise had financial problems, then it will be on record. This record is searched every time you apply for a loan, H.P., store credit or any other form of borrowing so your history will affect the terms on offer to you or whether or not you can obtain a loan at all. High Street banks and Building Societies will as a rule not help anyone who has experienced problems in the past few years, there are however, many well established and reputable financial services companies who offer loans based on your present circumstances rather than your history.

Q:

What exactly is a secured loan?

A:

Laid out in simple terms a secured loan gives security to the lender on the loan rather than just a promise to repay the loan. As a rule this would normally be a first or second mortgage on the borrowers home.

Q:

What happens if I already have a mortgage or loan secured on my home?

A:

You will find it is possible ( in fact common ) to have more than one mortgage or loan secured on your property, most lenders will give a further mortgage or loan providing there is sufficient free equity in the property to secure the loan.

Q:

Are there any benefits to having a secured loans as opposed to an unsecured loan?

A:

This is dependent on the terms of the loan, but in general, a lot of lenders will only grant a loan when security for the loan is provided ( i.e. it can be easier to obtain a loan when you have security - particularly in cases of adverse credit ) in general secured loans offer more flexibility in loan repayment terms, but the most important factor has to be that the interest rate on secured loans is generally much lower than unsecured loans.

Q:

What happens if my loan application is not accepted?

A:

Occasionally a lender may not wish to give you a loan, this could be for any number of reasons, but the lender does not have to tell you exactly why you have been refused! You can however ask for the name and address of any credit reference agency the lender has used for assessing the loan.
Loan & Mortgage Credit Reference Agencies - The two agencies used by most lenders when assessing loan and mortgage applications are as follows:

Equifax plc,
Credit File Advice Centre,
PO Box 3001,
Glasgow
G81 2DT Experian Limited,
Consumer Help Service,
PO Box 8000,
Nottingham,
NG1 5GX