1. What is debt consolidation?
Debt consolidation is the process whereby an individual pays off multiple debts by taking out a single loan over a fixed period.
2. Are debt consolidation loans secured or unsecured?
Often a debt consolidation loan is secured against an asset, which is likely to be property however there are unsecured loans available
3. What would happen if I default on the payments?
Think carefully and be aware of the consequences of missing payments on your debt consolidation loan. As it is secured on your property, should you fail to keep up repayments, you could lose your home.
4. What can I use the loan for?
You can use such a loan to pay off existing debts in part or in full.
5. Why do people need consolidation loans?
People may need to pay off the following: multiple credit cards and store cards; overdrafts and bank loans; hire purchase agreements; and mail order catalogue debts. Consolidation loans make it easier to pay off these debts, as there can only be one monthly repayment.
6. What is the aim of debt consolidation?
The aim of debt consolidation is to make payments to your creditors more manageable.
7. How long do I have to repay the loan?
This depends on your individual circumstances and the payments you can afford to make on a monthly basis. You may want to pay your debts off as quickly as possible, or you may want to make the payments more manageable by increasing the term of the loan.
8. Do I receive the money straight into my bank account?
The issuer will either make direct payments to your existing creditors to pay them off, or advance the loan to you directly. You will then be responsible for paying off the debts yourself.
9. Who can I speak to about debt consolidation?
Harrington Brooks has extensive experience in debt consolidation, which means we are well-equipped to give you the answers you are looking for. Contact us on 0800 0481 764 today.
1. What is a remortgage, and how does it work?
Remortgaging means you end your old mortgage scheme and switch to a new one, which may involve switching your lender. You could stay with your current lender, merely changing your terms, perhaps opting for a fixed rate, or change to a more attractive rate.
2. How competitive are your interest rates?
We have fostered excellent long-standing relationships with some of the top UK lenders. This puts us in a better position to find loans at very competitive interest rates. We are confident that we could find you a loan that would suit your needs and circumstances.
3. Is it always true that consolidation will reduce my monthly payments?
No it's not always true. It depends on individual circumstances. However, if it's possible, we will show you how much you could reduce your monthly payments by.
4. Will you do a credit check at the outset?
When we contact you in response to your Quick Enquiry submission, we will ask you some questions about your circumstances and make an initial assessment to establish how we can assist. When we are confident that we can offer you a solution which we consider beneficial we will ask you for your consent to carrying out a Credit Check. You remain in control of whether or not we do this.
5. My credit history is poor. Can I still have a remortgage?
Just because you have had difficulties in the past, it does not mean you will be unable to get a remortgage. We are experienced in arranging mortgages for people in difficult financial circumstances. Call our experienced advisors today to discuss the options available to you.
6. How long do I need to wait before you approve my remortgage?
There is a fair bit of legal work involved, and we need to ascertain whether you can afford the payments on your remortgage, along with the equity available in your property. The length of time that this can take depends on individual circumstances.
7. Can you advise me whether a re-mortgage is worthwhile?
Yes. Assuming we know enough about your circumstances. The final decision has to be yours, of course.
8. Having problems with arranging a remortgage?
Harrington Brooks can help you source the finance you require. If you have previously encountered problems with arrears on your mortgage, CCJ's and Loans we can help you to find a solution which fits your requirements.
9. Why can Harrington Brooks finance my remortgage when other lenders can’t help me?
We offer a range of products and services to assist individuals who have previously experienced bad credit. Our trained advisors will work with you to find the best solution available from our panel of Lenders and mortgage plans.
10. Can you explain an interest only mortgage?
With an interest only mortgage the only payments you make each month are the interest on the money you have borrowed. This makes monthly payments more affordable; however, you have to set up a savings / investment facility in order to repay off the outstanding mortgage at the end of its term.
11. Early Repayment Charges – what are these?
These are charges that any mortgage provider may charge if you repay your mortgage early or transfer your existing mortgage to another mortgage provider. We would advise you to always check the Terms and Conditions of your mortgaged to see what Early Repayment Charges apply.
12. Remortgaging – how long can I expect this process to take?
Arranging a remortgage obviously depends on your individual circumstances, however as a guide to timescales it takes on average 4 to 6 weeks to arrange.
13. How do I arrange to remortgage?
Arranging your remortgage couldn't be easier. All you need to do is complete our Quick Enquiry Form and we will provide you with a quote detailing our best deal available to you. Alternatively, if you prefer you can call one of our advisors on 0800 0481 764 who will be happy to assist with your enquiry.
14. What happens to my mortgage if I decide to move house?
You may be able to transfer your mortgage to your new property; this depends on the Terms and Conditions of your mortgage and whether the equity is available in your new property.
15. What should I watch out for on the remortgage market?
Always be aware of the Terms and Conditions of your mortgage. Key things to be aware of are Redemption Penalties which you may be charges if you need to settle your mortgage earlier than the term.
16. What type of interest rate can I expect with a remortgage agreement?
The interest rate you receive will depend on your individual circumstances and the mortgage plans available to you.
17. I don’t need cash so I have no real reason to remortgage.
This is a good point you make. However, you may be able to lower your interest rate or find a mortgage that is more suited to your personal circumstances.
Releasing the equity in a property is not the sole reason people remortgage. Interest rates are at a very low level, and this means greater competition amongst mortgage lenders. So why not use this to your advantage?
1. How do you receive my application and what happens next?
When you complete our Quick Enquiry Form it will be sent to us through a secure channel. Once we receive it, one of our loan officers would then analyse your financial information. We base our decision to provide you with a loan or mortgage on factors such as your income, expenditure, credit history, employment and the equity available in your property. We then start work on finding you the best suitable loan or mortgage provider.
2. How much would you allow me to borrow?
Our loan scheme could allow you to borrow up to £25,000, depending of course on how much exactly you can afford to repay every month and the equity available in your property. The least you may borrow is £10,000. Typical repayment periods are between 5 and 25 years.
3. I want to use the money to spoil my loved ones and myself. May I?
Many of our valued customers use secured loans to settle some or all of their existing debts, as this would reduce their monthly outgoing expenses to a single repayment. This would be a good idea as it will help you to manage your finances; however, you could lose your property should you struggle to make repayments on your secured loan.
Another popular way to spend the money is to buy a new car or do home improvements as the interest rate might be better than that of a personal loan or a car loan. Another bonus is that you could negotiate far better with cash in your hand
4. What would my loan cost me?
You would have to speak to one of our consultants or use our loan calculator, as we determine the loan's total cost by the monthly repayment and the period over which you choose to repay it.
5. What APR do you charge me?
This again depends on your personal circumstances; speak to one of advisors today who can advise you on the rates available to you.
6. I don’t want anyone to know about my application.
That is also fine! We treat all our loan applications with the utmost confidentiality.
7. Would my employer need to know I am applying for a loan?
If you can produce pay slips and/or a P60, we may not need to contact them. We need your consent to contact any third party. If you struggle to find a pay slip, we might need to contact them to confirm your employment, how long you have been in their employ and what your annual salary is. They need not know the exact details of your loan enquiry.
8. The last couple of years have been difficult. Could you still help me?
We have dedicated agents who would be happy to assist anyone, especially those who really need the help. If you have had difficulty in the past, we would endeavour to help you with loans, which could, if paid promptly, boost your credit score greatly. County Court Judgements, arrears and poor credit ratings may not be the end of your financial life story.
9. What happens if I want a second loan a year down the line?
If that happens, you come and see us! Depending on how well you maintained your original payments, we might be able to assist you further. Give us a call as soon as you have that sneaky suspicion that you need more funds and we will gladly give you a quotation.
10. Some extra cash came my way unexpectedly. May I finish the loan earlier?
Yes, you can however you may be subject to an early repayment charge by the lender.
11.I'm self employed. Would I still be eligible?
Speak to one of our advisors today. We have loans available that are specifically tailored for self employed people.
12. What if I move house?
If we secure a loan on your property, you may have to pay it off from the proceeds of the sale. The possibility to transfer it to your new property does exist if there is equity available and the Lender allows you to do so. We can discuss this in greater detail when you want to move to advise you on the options available.
13. I only recently started at my new employer. Do I still qualify?
Although we normally prefer to see three consecutive pay slips, we may be able to arrange a loan without these.
14. Could I still qualify even if I am a new homeowner?
That should be fine, though we might have to refer you to a private rent reference.
15. Please could you define what a secured loan is?
Secured loans are generally tied to a major asset, which could be property. One of the advantages of a secured loan is the cost factor: they can be cheaper than unsecured loans. A downside of it is the risk factor: you could lose your property should you be unable to meet the monthly payments on it.
Normally, clients apply for secured loans when they need a large amount of money. These amounts could range from, for example, £10,000 upwards and could be repaid over a long period of up to 25 years.
Although you do not necessarily need to have a great deal of equity in your property to secure the loan, you should have enough to cover the loan amount. It is also possible to have more than one loan or mortgage secured on your property.
Lenders feel secure in knowing that the loan is tied to your asset, which could, if there are defaults on the payment, be claimed as compensation.
The benefits are self-evident: the Annual Percentage Rate (APR) is usually lower than on unsecured loans and secured loans can have more flexibility on their repayment plans and terms.
Decide whether you prefer your property to be tied to a loan when you need to choose between a secured and an unsecured loan. Even though unsecured loans are not tied to a property, you would still incur penalties for non-payment on the loan amount.
Set enough time aside to have your property valued. Secured loans could offer you a more flexible approach to solving your credit problems by consolidating all payments into a single monthly repayment.
1. What qualifying criteria apply to an Equity Release programme?
If you are 55 years or under, and a property owner.
2. What charges apply to an Equity Release programme?
There are a number of fees involved, such as the following: Arrangement fee; Legal costs; Valuation fee; Insurance; Rental charge and Early Repayment should you pay off a lifetime mortgage.
Many of these charges may be added to the loan and do not have to be paid in cash.
3. Would negative equity to affect our property?
We're a member of Safe Home Income Plans (SHIP) and this offer an Equity Release schemes with a no negative-equity guarantee, which means your property's value will never exceed that of the mortgage.
4. I want my spouse to stay in the property upon my death.
This is possible if you took out the scheme in both your names.
5. Will I forfeit my property?
In some instances, yes, you may lose your property; however, if your plan is a SHIP one, you may be able to keep it. Those unable to pay the interest on a lifetime mortgage or the rent on a home reversion may risk losing the property.
6. Do I have alternatives to a Home Equity Release Scheme?
Some financial institutions could offer you loans or interest only mortgages, but be careful that the repayments do not affect your expenses too much.
7. What happens to the property after my death?
A representative would sell the property and repay the loan and interest to the lender. A specialist lender would be able to sell the property even after it has remained unsold for a certain period, which may be anything from 6-18 months.
8. Reversion plans
Companies with 100% control over a property, get a provider to sell it. Those with less than 100% arrange the sale themselves. Your estate would receive the original amount agreed upon, minus the sale costs. Some split the sale costs with your representatives, and this would be in the same proportion as the original sale. Others may charge you all the fees.
9. Who is responsible for the property's maintenance?
You are responsible for this, and failing to do so may mean the company will do repairs and add that to the loan's cost.
10. I might move home soon. Would that be allowed?
Most lenders do not mind transferring a home equity plan; however, moving to a lower priced property might mean a repayment to the lender's scheme. This would normally be taken from the sale of the property.
11. Do I qualify for an Equity Release Scheme if I have a mortgage?
Depending on some conditions, this may not be as tricky as it seems. Some providers may still accept you, but you would have to repay the mortgage. This does reduce the amount of cash, though you'll no longer have to make monthly payments.
12. How do I cancel my Home Equity Release Scheme?
Lifetime mortgages may be paid off, though some lenders may add certain charges. Ask about this before entering into a scheme. Home reversion schemes, however, can not be cancelled.
13. Does a change in my marital status affect the Home Equity Release Scheme?
It is advisable that the new spouse joins to the scheme, as some Schemes allow him or her to live in the property after your death.
Lower Monthly Payments 
