Frequently asked questions

In essence, it boils down to your individual circumstances. If you have a lower credit score or a lot of existing credit obligations, you may find that your eligible borrowing amount is limited.

Typically, personal loans span from £500 to £35,000 with repayment periods of 1 to 8 years. Homeowners may also consider homeowner loans, which generally range from £5,000 to £500,000 or more, with terms extending from 1 to 35 years. It's crucial to note that failure to meet mortgage or other debt repayments secured against your home could lead to repossession.

When it comes to credit cards, each card has a designated minimum and maximum credit limit. The limit offered to you is contingent on your personal situation. If the maximum limit isn't initially offered, your credit card provider might consider increasing it in the future.

For those exploring car finance, you can compare both hire purchase (HP) and personal contract purchase (PCP) agreements, providing the potential to borrow up to £200,000 over terms ranging from 1 to 6 years.

The APR presented by lenders for a loan is determined by your credit history and individual circumstamces. Your borrowing requirements will be considered and your information will be used to connect you with the most suitable products for your financial situation. Additionally, we transparently specify whether a rate is genuine (guaranteed) or representative (advertised). This ensures that you have a clear understanding of the expected rate before advancing with a lender.

In summary, a soft search represents a type of credit assessment that is not logged on your credit file, and hence enables you to explore loan options without impacting your credit rating. Consequently, you can assess your eligibility with us without any impact on your credit score.

Distinguishing a soft search from a hard search is crucial. Hard searches are documented on your credit file and can be seen by other potential lenders for a minimum of 12 months. While a soft search credit check might still be mentioned on your credit file, it remains concealed from lenders. This implies that you can search for loans and compare outcomes without compromising your prospects of securing financial assistance in the future.

The smart-search feature will not affect your credit score.

A soft credit check is used to align you with precise borrowing options. This means that when you explore loans, credit cards, or car finance through the platform, the search on your credit file remains visible only to you, and is not disclosed to any external parties. If you decide to move forward with a lender, only then may they conduct a hard credit check as part of their process.

There are currently over 100+ leading UK lenders on the platform, offering unsecured personal loans, secured homeowner loans / second-charge mortgages, guarantor loans, car finance, credit cards. These can all be compared in one quick and easy search.

loans, and the reasons behind opting for one over the other. Whether you're in the market for a new car, aiming to consolidate debt, or seeking a loan for home renovations, both secured and unsecured loans can both present viable options. The choice hinges on your individual circumstances and a variety of factors to be considered.

Secured Loans:

• These require collateral, such as property to secure the loan
• Typically involve larger loan amounts.
• Tend to span a longer loan period.
• Tend to span a longer loan period. Interest rates can be lower than secured loans.

Unsecured Loans:

• Unsecured loans do not require collateral from your assets.
• Generally geared toward smaller amounts, ranging from £1,000 to £35,000.
• Typically have shorter loan durations.
• May incur higher interest rates compared to secured loans.

When comparing a secured loan to an unsecured loan, there are several considerations to keep in mind.

For loan amounts ranging from £500 to £35,000, an unsecured loan presents itself as a viable option. Unlike a secured loan, an unsecured loan does not require collateral, such as your home, to secure the loan. The lender provides the funds without the need for an asset guarantee, and you repay it through regular monthly instalments along with interest. Consequently, unsecured loans have a quicker setup process, and you may have the funds in your account on the same day.

The interest rate offered on an unsecured loan depends on your credit score and individual circumstances. Unsecured loans can be utilised for various legal purposes, including debt consolidation, home improvements, purchasing a new car, education fees, or other events like a holiday or wedding. Repayment terms for unsecured loans typically range from 1 to 8 years.

On the other hand, eligibility for a secured loan, also known as a homeowner loan, requires that you are a homeowner. This is because the loan is secured against your property, granting the lender the right to possess your property to recover their costs if repayment is not fulfilled.

Secured loans serve the purpose of borrowing larger sums, typically ranging from £5,000 to £500,000 or more. The need for collateral arises due to the larger loan amounts involved. With a secured loan, you can seek guidance from a qualified adviser to determine the most suitable loan option for your circumstances. Additionally, secured loans offer significantly longer repayment terms, spanning from 1 to 30+ years.

While secured loans are commonly used for debt consolidation or home improvements, they can be employed for any legal purpose. While your credit score influences the offered rate for a secured loan, other factors, such as the amount of equity in your home, also play a role in the loan terms.

Choosing the Right Loan for You

Determining the right type of loan ultimately depends on what aligns best with your circumstances. Opting for the loan with the lowest interest rate may be your preference, recognising it as the most cost-effective choice. Alternatively, you might choose to extend the repayment period to reduce monthly instalments, even though this results in a higher overall repayment amount, making day-to-day expenses more manageable. Another consideration could be selecting a loan for which you are highly eligible to minimise the risk of a credit rejection being noted on your credit file. Whichever path you decide to take, ensure it's a decision that suits your individual needs.

The process can take from 3 to 6 weeks as an industry average. However, on average customers who use our portal receive their funds within 21 days.

Completing the secured loan procedure promptly hinges on your ability to efficiently and accurately furnish all necessary information.

Upon submitting your secured loan application, you will typically receive a quotation. This quotation necessitates validation and confirmation from your lender. Should you choose to advance, your lender will then evaluate your credit report.

For loans secured against your property, the lender will inquire about its valuation. Essentially, they seek assurance that your home's equity (synonymous with 'worth' or 'value') adequately covers the loan amount.

Throughout the secured loan process, you may also be required to provide banking particulars and additional financial data. This timeline varies among lenders but can span several weeks. Feel free to inquire about an estimated timeframe when you decide to proceed.

The chance of obtaining a loan with a low credit score is contingent on your individual circumstances and the financial avenues accessible to you. For instance, being a homeowner may broaden your borrowing possibilities.

Given that a lower credit score may categorise you as a higher lending risk, it's likely that you would be presented with a higher APR, or in some cases, not receive a borrowing option at all. If your credit score is low due to a lack of borrowing history but you possess a substantial disposable income, you might explore leveraging Open Banking. This allows you to demonstrate to a lender that you have the financial capacity to repay the desired loan.

To explore your financing options without impacting your credit score, you can utilize our online eligibility checker. This tool provides insights into available options before formally applying for any financial product. The eligibility check has no impact on your credit score. Subsequently, you can assess whether you'd like to take measures to enhance your credit score before selecting a lender, potentially leading to improved APRs and broader borrowing choices.

While a second charge mortgage or secured loan is the main focus here, it is not the only borrowing option available.

Unsecured Loan: An unsecured loan, also known as a personal loan, is a form of borrowing that is not secured against any of your other assets. Lenders rely on your credit score and other indicators to determine your creditworthiness.

Unsecured loans are typically smaller than secured loans and have shorter terms, making them suitable for borrowing amounts under £50,000.

Credit Card: Credit cards can be an excellent alternative to loans if you only need to borrow a relatively small amount and want the flexibility to use the credit when needed.

Credit cards usually have lower overall credit limits compared to loans but offer flexible monthly repayments. You can choose to make only the minimum repayment, which is often quite low, and decide when to pay off more of the debt at your convenience.

However, for larger borrowing needs, a second charge mortgage (secured loan) might be a more appropriate option.