Low Interest Rate Secured Loans UK

Glossary

Confused by industry jargon? Browse through our personal loan glossary and put your mind to rest.

Adverse credit	this term is used to describe anyone who might have had a history of using credit badly in the past. Things like county court judgements (also referred to as CCJs), mortgage arrears and late payments on credit cards can all lead to an adverse credit history, as will bankruptcy.

APR	this stands for ‘annual percentage rate’ and is a percentile figure representing the total amount of interest to be paid over the term of the loan, including any additional fees that might be imposed by the lender.

Arrears	this term is used to describe the amount of money or time that a borrower is behind in their repayment schedule.

Collateral	a term used to describe property or assets. Collateral can be used as security for a personal loan, and will be at risk if repayments are not kept up.

Credit agreement	an agreement between lender and borrower, you will need to sign a credit agreement before you receive a loan. The credit agreement will outline the terms and conditions of your contract.

Credit reference agency	Credit reference agencies are used by loan providers in order to assess their clients applications. Credit reference agencies have access to information about UK residents’ credit history and will produce a ‘credit report’ based on these details.

Default	this word refers to the practice of failing to make mortgage repayments as agreed.

Fixed interest rate	an interest rate that is guaranteed not to rise throughout the term of the loan.

Payment protection plan	this is a type of insurance that you can purchase that will protect your loan repayments should you become unable to keep up repayments due to circumstances beyond your control.

Secured	a loan that is secured upon free equity or collateral that will be at risk should the borrower fail to keep up their repayments as agreed.

Underwriting	the process of assessing and approving a loan application.

Unsecured	a loan that does not require the borrower to put up collateral with which to secure their borrowing.

Variable interest rate	an interest rate that will rise and fall in accordance with the Bank of England base rate.

Loan Links

UK Loans Directory	Find useful links to a huge range of loans websites across the web in a variety of categories as well as handy tips and tricks.
BBC Business & Money	Browse through all the latest features, ask the experts and learn about all the best deals available.
Financial Times	Get all the latest financial stories from FT.com and compare and apply for a range of products online.

Loans secured on property. Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.

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