“From initial contact,
to the completion of
the loan, I was made
to feel relaxed and
confident, nothing
was too much trouble.”
Mr S.

APPLY NOW!

are you a homeowner? *

name *

1^st line of address *

post code *

amount required *

telephone *

email address *

contact preference *

Use this quick form and one of our friendly brokers will contact you - we don't charge you a fee, there's no obligation and no credit check without your permission.
*all fields are required.

Glossary

Application

A document detailing a potential borrower's income, debt and other obligations to determine credit worthiness.

Approved In-principle
This is a decision we give providing agreement to the loan subject to additional criteria being met.

APR

Annual Percentage Rate of charge.
The true rate of interest charged on a loan taking into account the total cost of interest and other charges e.g. brokers fees/legal fees. The calculation is set out in statutory regulations.

Autoscore

The process of using specialised online credit search databases to identify an applicant’s credit status.

Balance Requested

The amount of loan owed at one time.

Bankruptcy

A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow.

Broker

An intermediary who identifies, and places, customers requiring a loan or mortgage etc, with a company (Lender) able to provide it. They can be fully independent, part of a network that uses a panel of providers, or tied to certain institutions in which case they can only sell their products. The broker often carries out the administration to do with processing the loan.

BSQ – (Building Society Questionnaire)

A questionnaire completed by bank/building society or other lender providing details and conduct of an applicant‘s mortgage account.

CCJ

Whenever someone fails to pay for something and is subsequently taken to court, the magistrate may issue a County Court Judgment against that individual to pay the outstanding debt. This may well affect your ability to raise finances in the future.

CHAPS

Clearing House Automated Payment System. An electronic way of transferring money between accounts.

Consumer Credit Act

Act of legislation to define the rules relating to lending money and aimed at protecting the consumer when credit is agreed with a third party.

Contract

A legal document between two parties confirming any sort of agreement such as terms of sale, employment or service.

Contract Liability

The terms of a contract to which you must abide. There may be financial or even criminal penalties which you incur if you do not meet your contractual liabilities.

Conveyancer

A person, used as an alternative to a solicitor, to carry out the legal work involved in buying and/or selling a property. Note: It should be checked that they are licensed to carry out this function.

Credit

A measurement of a person's ability to pay bills on time. Several companies track individuals' credit histories by detailing late or missed payments on loans, credit cards and other debts.

Credit Agencies

Companies such as Equifax or Experian that are often used by lenders to assess your financial background and determine the level of risk involved with lending you money.

Credit Adverse

When a borrower has a poor credit history, has previously been declared bankrupt or has outstanding County Court Judgments, they are often described as credit adverse. People with adverse credit ratings often have to pay higher interest rates on a mortgage or a loan.

Credit Checks

These are checks made when you try to borrow money or purchase goods on hire purchase, and are used to determine the risk of lending you money. They will examine your credit history and check for payment defaults and what you owe to other financial organisation. A credit agency is often used.

Credit History

If you have a history of bad debts, county court judgments or bankruptcy in your name, you may not be eligible for a mainstream mortgage. To help ensure you are a good credit risk, a lender may require references from your existing lender, bank or landlord. In addition to this, many lenders will make use of the services of one of the two large credit agencies, Experian and Equifax. These offer a credit inquiry or a full credit report, which show details of any existing credit arrangements or county court judgments against you.

Credit Period (Term of Loan)

The time frame for which the lender agrees to provide you with credit.

Credit Rating

The degree of credit worthiness assigned to a person based on credit history and financial status.

Credit Reference Agency

When assessing your application, a mortgage lender will study your records. These records are held centrally by credit reference agencies, and also contain personal detailed information.

Creditor

An individual or institution to whom a debt is owed.

Default

When one mortgage payment or a series of payments are missed, the borrower is referred to as being in default.

Dependents

Person(s) who depends on another for financial support.

Direct Debits

A payment made from your account automatically to pay bills etc, usually amounts that vary, e.g. gas bill.

Discounted Rate

A discounted rate gives you a reduction of, for example, 2% off the standard variable rate (SVR) for a specific period. So, during this period should the SVR rise and fall, you will still qualify for the discount and therefore pay a lower rate.

Endowment

A life assurance policy that is designed to produce a lump sum to pay off an interest only mortgage. There are a number of different kinds of endowment policies: 'with-profits', 'unit-linked' etc.

Equity

Your equity in the new home is the proportion of the value of the property that is free from debt.

Equity Release

Equity release or home income schemes allow you to generate either a lump sum or a regular income in return for allowing the lender to take ownership of a portion of your home. These are often used by people in later stages of life that have paid off all or most of their mortgage and who are looking to raise funds without borrowing money.

Fixed Rate

The rate is fixed for a specific number of years, so you know what your payments will be over that period. Following this period, the rate will usually revert to the lender's standard variable rate.

IFA

Independent Financial Advisor.

Interest Rate

This is the percentage of your loan that a lender charges you each year for the privilege of borrowing money. The prevailing level of interest charged by lenders depends largely on the economy and the Bank of England base rate. If the Governor of the Bank of England and the Monetary Policy Committee are worried about the economy overheating and causing inflationary pressure, they may raise interest rates. This makes it more expensive to borrow money and therefore the overall demand for borrowing is reduced. Since this is one of the most commonly used instruments for managing the economy, we are subject to fairly frequent changes in interest rate.

Intermediaries

Brokers and other intermediaries attempt to arrange suitable financial products or policies for you. They can be fully independent, part of a network that uses a panel of providers, or tied to certain institutions in which case they can only sell their products.

IPT

Insurance premium tax. Tax on all UK general insurance under Government control, currently charged at 5% (04/02/2005) of the premium.

Income (Gross)

Total income before any deductions are made, for example, tax, national insurance, season ticket loan etc.

Income (Net)

Total income received after all deductions have been made.

Leased Hold

A leaseholder holds the title to land only for a finite term i.e. the length of the lease upon payment of a consideration e.g. rent.

Legal Charge

When a loan is ‘secured‘ on a property, the borrower agrees to the lender creating a charge over the property; the deed makes reference to the rights and obligations of both parties as detailed in the Legal Charge, Standard Security or Loan Agreement. Thus the property is known as the ‘security‘.

Lender

The actual company that provides the finance to satisfy a loan or mortgage request.

Liabilities

Basically, liabilities are debts that you have and the regular outgoing payments that you make. The reason you must show your bank statements is usually to help the underwriters identify anything in your current expenditure that may impinge upon your ability to repay the loan. They may want to know about any other mortgages, debts, credit cards, HP agreements, loans, overdraft facilities, maintenance and court orders.

Loan - Bridging

This is a short term loan provided by a bank or building society which covers you if you need to pay for your next home, while still waiting for the money to come through from the sale of your current home. If you do require one of these, you must ensure that the funds to repay the loan will be in place when the loan period expires.

Loan - Consolidation

When one large loan is taken out to pay off a variety of smaller loans/credit cards/store cards held with different providers. A Secured loan can be used for this purpose and in some cases can work out cheaper as secured loan rates tend to be cheaper than personal loan/credit card/store card interest rates.

Loan - Secured

A loan to be used for any purpose. The equity in the property is put up as security against not paying the loan back.

Loan - Unsecured

A loan to be used for any purpose. The credit rating or financial position of the applicant is such that no security for the loan is required.

LTV – Loan to Value

This is the size of the loan or mortgage as a percentage of the value of the property or price being paid for the property e.g. a property valued at £50,000 with a mortgage of £45,000 would have an LTV of 90%.

Mortgage

A loan to purchase a home where the property is used as security in the event of non-payment of the mortgage.

Negative Equity

The situation where the amount owed on a mortgage exceeds the value of the property.

Payment Protection Products

A protection product shields you from exposure to the financial hardship caused by events such as unemployment, illness or injury. Some protection products are designed to provide additional medical or financial benefits to those that are available through the state system.

Redemption Penalties

When a loan is redeemed (paid off) early, either in full or in part, many lenders will charge a fee. This particularly applies to Fixed, Discounted or Capped rate loans or mortgages.

Redundancy Insurance

A form of income protection that does not cover any form of sickness, injury or disability. The purpose of this type of policy is to replace income lost through a short to medium term period of redundancy. It provides you with a monthly tax-free income to cover a portion of your lost earnings. It is often sold in conjunction with the accident, sickness and disability element of income protection policies, in which case it is known as Accident, Sickness and Unemployment (ASU).

Salary

The money you receive from your employment. Commission, overtime and bonuses are not normally considered as part of your gross income by the lender, unless you receive them at a guaranteed level.

Second Charge

Mortgage ranking behind a first mortgage i.e. a second loan.

Security

When a loan is taken out it is ‘secured‘ on a property, the borrower agrees to the lender creating a charge over the property; the deed makes reference to the rights and obligations of both parties as detailed in the Legal Charge, Standard Security or Loan Agreement. Thus the property is known as the ‘security‘.

Security Address

When taking a secured loan or mortgage, the security address is the address of the property which is being offered as collateral for the loan. Where property is offered as security in this way, lenders are generally prepared to offer more flexible terms and lower interest rates.

Self-certified

Lenders that operate this type of scheme allow the applicant to confirm how much they earn by "Self-certifying" their income. Schemes are available to both employed and self employed applicants. Typically for the employed, the schemes are designed to help those applicants with incomes that incorporate a large element of bonus or where they derive income from a number of jobs. Where as for self employed there is no need for full 3 years audited accounts to be provided.

Self-employed

In some cases the lender will recognise an applicant as self employed if the applicant is a shareholder within a company. Typically the shareholding is a minimum of 25% however this can vary from lender to lender.

Settlement Figure

The sum quoted in order for the loan to be repaid during the contracted term.

Single Insurance

Policies vary from lender to lender. Generally single insurance offers protection against sickness, accident and redundancy for the main wage earner. Cover is also available for self employed borrowers. Details of the specific insurance plan will accompany the lenders offer. Loans 4 People strongly recommend that you consider some form of insurance protection, especially in the case of secured loans and mortgages.

Standard Security

The equivalent of the Legal Charge in Scotland.

Structural Survey

A detailed survey of the structure of a building carried out by a Structural Engineer or Chartered Building Surveyor. Surveyors are liable for negligence.

Sub-prime Mortgage

Mortgage granted to a person who is unable to borrow money secured on a property from a normal lending source. The reasons the applicant may not be granted a mortgage by a high street lender, could fall into one of three categories:
o Adverse Credit information registered against them.
o Existing arrears on current mortgage facilities.
o An inability to satisfactorily prove the level of income required by a high street lender.

Term

Period of a loan expressed in months or years.

Title

Evidence of the right of property ownership; can be held solely, jointly, in common or in corporate or partnership form.

Title Deeds

Set of documents relevant to present and past ownership of a property. Details names of owners and details of institutions that have registered a charge against the property. Held by the first mortgage lender whilst their charge remains in existence.

Title Documents

The legal documents which provide proof of ownership of a property.

Underwriting

The process by which the ability of a prospective borrower to repay a loan is assessed (also the name of the department that undertakes this work). The process takes into account various factors including employment history, financial status, previous credit history and current earnings.

Valuation

A brief inspection of a property for mortgage purposes. Whilst it is for the lenders use it is often paid for by the loan applicant.

Variable Interest Rate

A loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills.

home • unsecured loans • secured loans • debt consolidation • debt management • contact us

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ON ANY OTHER DEBT SECURED ON IT.

Our typical APR is 11.4% variable. The actual rate will depend on your circumstances. Ask for a personalised illustration.

Information on this site must not be construed as legal or financial advice on specific matters. All information is a public resource of general information, which is intended to be accurate, complete and up to date but is not guaranteed to be so. Your use of information on the Website or materials linked to the Website is at your own risk.
This site is operated by Blithbury Data Management Ltd - Registered Office 4A Eastgate Street, Stafford, ST16 2NQ
Blithbury Data Management Ltd is a limited company registered in Wales UK and is registered under the Data Protection and Consumer Credit Acts. Company registration number: 541908 (Cardiff).

Zebra Loans specialise in: debt consolidation loans, unsecured loans, secured loans and second mortgages, debt management packages and IVAs