Personal borrowing questions that need answers?

Personal borrowing questions that need answers?

We hope you’ll find the answer in these Frequently Asked Questions (FAQs).

Secured loan questions that need answers?

What is a secured loan?

A secured loan requires you to provide your home as security. This means we take a legal charge over your property, in the same way a mortgage provider would, which we will remove once the loan is fully repaid. When you take a secured loan, you still own your property. We are a responsible lender and want to make sure you can afford the repayments on your secured loan, but this security means, as a last resort, should you be unable to repay the loan we would repossess your property to recover our loss.

Borrowing money is a serious matter. You need to think carefully about whether you can afford the payments over the full term of the loan (not just during any introductory period when you may pay a lower rate of interest). 

 

How will Shawbrook treat me as a secured loan customer?

Our teams, and our brokers, have experience of all kinds of personal lending.

We are a responsible lender, and we will check that you can afford the loan before we agree to it. This will include a detailed review of your income and expenditure.

We promise that we will:

  • Act fairly and reasonably in our dealings with you.
  • Help you understand the financial implications of your secured loan.
  • Give you high quality service.

 
How do Shawbrook choose and vet their secured loan brokers?

All of our secured loans are arranged through an independent broker. We only work with brokers who:

  • Have a valid interim permission with the FCA and are active on the Data Protection register.
  • Satisfy our strict broker requirements (we check that they’re financially sound, and we check their references).
     

What will the secured loan broker do for me?

Your broker is responsible for arranging the loan. They should explain the terms and conditions to you, and explain what the various documents mean.

You should ask for an explanation if you don’t understand any part of your secured loan agreement, including the terms and conditions.

If, after talking to your broker, you are still in any doubt you should seek independent legal and/or financial advice.

 

How much can I borrow on a secured loan as a percentage of my property value?

Currently our maximum loan-to-value is 95%.

But the amount that we can lend you will depend on several things, including:

  • The value and saleability of your property.
  • Your income and any other credit and loan commitments that you have.
  • Your credit history and how long you have lived in your property.

 

What is the minimum and maximum that I can borrow with a secured loan?

Minimum: £3,000

Maximum: £500,000.

 

How long can I have to pay back the secured loan?

Minimum term: 3 Years.

Maximum term: 25 Years.

 

Is there a minimum property value that you need for a secured loan?

Yes, £75,000.

 

What percentage of the property's value will you lend against?   

We will consider lending from 50% to 95% of the property's value, depending on your requirements and situation.

 

I am self-employed – can I get a secured loan from you?

Yes. We do lend to self-employed people if they’ve been self-employed for at least six months and can show us the following proof of income:

  • A SA302 (HM Revenue and Custom’s calculation of your tax), an accountant’s certificate or payslips.

 

Is the interest rate on my secured loan a variable rate?

  • Your secured loan will have a variable interest rate, and that rate can go up or down (see third bullet below).
  • Your secured loan may have a fixed interest rate for an introductory period. But once this introductory period is over (typically three or five years), the loan goes onto a variable interest rate.
  • We may vary the Rate of Interest from time to time to take account of, in a reasonable and proportionate way,
    • any change in the Royal Bank of Scotland Plc. base rate,
    • any change in the costs of funds we use in our lending business (or we reasonably expect that a change in funding costs is about to occur),
    • a change in the value of our security because of the way in which the Property is used or occupied,
    • to take account of a change in law, decisions, determinations or guidance of any regulatory authority which regulates our lending business or any codes of practice with which we intend to comply.

 

Can I settle my secured loan early?

You can settle your secured loan at any time.

You can request a settlement figure, and this figure will be valid for 28 days.

We will not charge you any additional settlement interest after this date, provided you settle the loan within this 28 day period.

The settlement figure will include a discharge fee of £195. This fee pays for a solicitor to remove our legal charge on your property, and it’s mentioned in your secured loan agreement.

Your secured loan agreement includes early repayment illustrations. These illustrations show how much you’d have to pay to repay the loan when you’re:

  • one quarter of the way through the term of the secured loan.
  • halfway through the term.
  • three-quarters of the way through the term.

Please note that we have to make assumptions when we prepare these illustrations. These assumptions include:

  • A single rate of interest for the whole loan-term (although the rate may actually change over the term of your loan).
  • That you have paid all your loan payments on time.

 

Will each of my secured loan payments go towards the capital as well as the interest?

Your secured loan is a capital and interest loan. In other words, each monthly payment covers the monthly interest on the loan and a proportion towards reducing the loan itself. This means that each monthly payment reduces the capital amount that you owe (your loan balance). So your loan balance reduces over the term of the loan, and is repaid at the end of the loan term.

This assumes that you don’t miss any payments during the term of your loan.

 

Can I make overpayments on my secured loan?

Yes. You can make overpayments of any amount, as often as you like at any time during the term of your loan without penalty. Your monthly payment will not change but the term of your loan will reduce accordingly.

You should read the terms of your secured loan agreement very carefully before you sign the agreement. Ask your broker to explain any terms or points that you don’t understand.

 

Who do I contact if I have questions about my secured loan?

Our customer services team can help with any question about your secured loan account. You can call them on 0845 650 6287 (weekdays only 9.00am to 5.00pm).

 

What if I can’t make a payment on my existing secured loan?

We are a responsible lender, and we will always deal with you honestly and sympathetically.

But please tell us immediately if you can’t afford the payments on your secured loan.

Tell us before you miss any payments, and we’re much more likely to be able to help.

You can contact us on 0845 650 6287.

If you fail to meet any of your repayments as required under the terms of your loan, you will incur reasonable charges and/or fees. These fees will be added to the amount that you owe.

You can find details of these fees in your secured loan agreement.

 

Where can I get general help and advice on borrowing and secured loans?

These non-profit organisations can give you free, confidential, and impartial advice:

 

Could you lend me more money on an existing secured loan account?

We may be able to increase the amount of your loan (we call it a further advance), please contact your original broker to discuss your options. 

What can I do to make sure that my secured loan application is processed smoothly?

Make sure that all the details on your application are accurate.

We rely on what you tell us in the loan application so any details that turn out to be wrong will delay your application.

If your circumstances change after you’ve filled in your application, you must tell your broker immediately.


Home-improvement finance questions that need answers?

We hope you’ll find the answer in these Frequently Asked Questions (FAQs):

 

How will Shawbrook treat me as a home-improvement finance customer?

Our teams have experience of all kinds of personal lending.

We are a responsible lender, and we will check that you can afford the loan before we agree to it. This will include a detailed review of your income and expenditure.

We promise that we will:

  • Act fairly and reasonably in our dealings with you.
  • Help you understand the financial implications of your secured loan.
  • Give you high quality service.

 

What is a home-improvement finance loan?

This loan is not secured on your property. But if you don’t keep up the agreed loan payments, we may ask a court’s permission to obtain a charge on your property which we may enforce to recover the debt.

Shawbrook will only do this as a last resort, if all other solutions have been fully exhausted.

Borrowing money is a serious matter. You need to think carefully about whether you can afford the payments over the full term of the loan (not just during any introductory period when you may pay a lower rate of interest).

 

Is the interest rate on my home-improvement finance a variable rate?

  • Your home-improvement finance will have a variable interest rate, and that rate can go up or down (see third bullet below).
  • Your home-improvement finance may have a fixed interest rate for an introductory period. But once this introductory period is over (typically after three-to-six months), the loan goes onto a variable interest rate.
  • The interest rate on your home-improvement finance may change if there is any change in:
    • The costs of funds we use in our lending business (or we reasonably expect that the costs of funding are about to change).
    • The laws, or guidance of any regulatory authority that regulates our business; or a code of practice that we comply with, or intend to comply with.

We will give you not less than 10 days written notice of any change to the interest rate, or notice in any other lawful manner.

 

Can I settle my home-improvement finance early?

You can settle your home-improvement finance at any time.

You can request a settlement figure, and this figure will be valid for 28 days.

We will charge you 1 month additional settlement interest, and this will be shown in your statement.

 

Who do I contact if I have questions about my home-improvement finance?

Our customer services team can help with any question about your home-improvement finance account. You can call them on 0845 600 7680 (weekdays only 9.00am to 5.00pm).

 

What if I can’t make a payment on my home-improvement finance?

We are a responsible lender, and we will always deal with you honestly and sympathetically.

But please tell us immediately if you can’t afford the payments on your home-improvement finance.

Tell us before you miss any payments, and we’re much more likely to be able to help.

You can contact us on 0845 600 7680.

 

Where can I get general help and advice on borrowing and home-improvement finance?

If you are having trouble making your secured-loan payments, please contact us first on 0845 600 7680.

These non-profit organisations can give you free, confidential, and impartial advice: