A

APR - Annual Percentage Rate

APR is the actual percentage of interest that is charged on your borrowings, including the total interest rate as well as other charges, such as legal fees.

Arrears

Arrears are payments that have been late, missed or underpaid on any loan or credit agreement.

B

Black Listed

To be Black Listed means that you have a really poor credit history. There will be a note against your account indicating that you are a severe lending risk meaning that you may only be lent credit on a high interest rate.

Bridging Loan

A Bridging Loan is a short term loan which can help you buy a new house, before the existing one is sold.

C

Capped Rate Mortgage

A Capped Rate Mortgage means that no matter how the base rate changes, the interest rate on your mortgage will not rise above a certain amount.

Consolidation Loan

A Consolidation Loan is a single loan which usually pays off multiple forms off debt, such as credit cards, overdrafts or store cards.

Credit Search

A Credit Search will be a check that a lender completes with a Reference Agency to see your credit history. It will detail any past or present credit activity.

D

Default

A Default means that you are in payment arrears and more than 30 days behind the repayment date.

E

Equity

Equity is the difference between the amount that you have left on your mortgage and the amount that your property is worth.

F

Fixed Rate

The term Fixed Rate usually applies to a mortgage, and means that you will be paying a fixed amount of interest for a specific number of years.

Flexible Rate

The term Flexible Rate will usually apply to a loan or mortgage and means that it will allow you to make a variety of payments, which you can increase of decrease (in line with your terms and conditions) to suit your circumstances.

H

Homeowner Loan

Also referred to as a secured loan, meaning that the loan is secured against your house. So it will be at risk if you fail to keep up on repayments.

HP - Hire Purchase

A form of credit where you hire an item, usually a vehicle, for a certain period of time whilst paying monthly payments.

I

Interest Rate

Interest Rate is the amount that you are being charged to borrow money, usually dependant on the type of borrowing and the lender.

J

Joint Loan Agreement

A Joint Loan Agreement is where there is more than one named person on the loan contract.

L

Liability

Liability is another term for a debt.

M

Mortgage

A Mortgage is a long term loan which is used to help buy a property. The loan is held against the property incase there are any repayment failures.

N

Negative Equity

Negative Equity means that the value of your property is worth less than the mortgage owed on it.

P

Personal Loan

A Personal Loan is otherwise known as an unsecured loan which can be taken out by an individual with a fixed interest rate and number of repayments.

Q

Quick assets

Quick assets can be converted into cash quickly in order to repay your creditors.

S

Secured Loan

This is a loan where an asset, such as your house or car, is secured against it. So if you are unable to keep repayments then you will lose that asset.

Standard Variable Rate

This is the changeable mortgage rate which is charged the majority of lenders, which falls in line with the fluctuating base rate.

T

Term

Term is the period of your borrowings.

V

Variable Interest Rate

A rate of interest which fluctuates in accordance with normal interest rates throughout the lifetime of your loan.

LOANS MAY BE SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS 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.

For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.

DebtConsolidate.co.uk is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.