Homeowner Loans - Finance glossary
Financal Term:
Explanation:
If you are self employed you will require an accountant reference but not audited accounts. We will simply require a confirmation letter from your accountant stating how long you have been self employed and that you are still trading.
This is the first set of credit agreement documents you will receive. There is no place to sign these documents as they are for your consideration only. After the consideration period we will send you the Signable Agreements.
The Terms & Conditions you agree and sign.
This refers to the progress of your loan application.
The ‘Typical’ APR for the ASDA Homeowner Loans is 9.9%. The actual rate available to you will depend upon your circumstances. However, the majority of ASDA customers will pay no more than 9.9%.
Arrears is a term used when there are unpaid instalments on an agreement. If your agreement goes into Arrears you will incur charges.
Your ASDA Homeowner Loan is subject to a 5% broker fee and a £595 arrangement fee.
This may be referred to as an ATML. It is a form we ask you to complete so we can speak to your mortgage lender.
This may be referred to as a BSQ and is information we obtain from your mortgage lender regarding your existing agreement with them.
This refers to the amount of disposable income you have on a monthly basis.
The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money to consumers to be licensed by the OFT. Your Customer Account Manager will go through the requirements of the Consumer Credit Act during the application process.
CCJ stands for County Court Judgment. You would receive a CCJ when a court has ordered you to pay a debt. If you have a CCJ outstanding your loan application may be unsuccessful.
On some occasions your Mortgage company will require us to ask for consent to register our second charge against your property.
You will enter into a "Consideration Period" once you have agreed your loan requirements with your Customer Account Manager. During the Consideration Period, which lasts for 16 days, ASDA are unable to contact you in anyway to discuss your loan. You are able to contact us to discuss your loan agreement at any point during this period.
To help assess your loan application we will contact a Credit Reference Agency who will provide details of your credit history and existing credit agreements with other organisations.
In order to be eligible for an ASDA Homeowner Loan you must fit standard criteria. You must be over 23 years of age, be a permanent resident of the UK, be a homeowner with a mortgage and be in receipt of a regular income.
Once you have applied for a loan with ASDA you will be contacted by your personal Customer Account Manager who will go through the full loan process with you and who will be contactable at any point of the loan process to provide any help or guidance you may require.
This stands for Direct Credit which is a payment that can be made directly into your bank account. This is one way in which you could receive your loan advance.
A Debt Consolidation Loan is when you replace your existing loans and credit debts with one single loan. By doing this you can reduce your monthly outgoings and usually pay less each month. Reductions in monthly repayments are usually obtained by having your loan over a longer repayment period or reducing the interest rate.
This refers to asking a lender to postpone their existing charge on your property in favour of a more recent charge.
An agreement would go into a default situation when you have missed over 6 monthly repayments consecutively. If you have outstanding defaults this may affect your loan application.
This stands for Data Protection Act which protects your individual rights and freedoms especially your right to privacy with respect to the processing of your personal data. Your Customer Account Manager will go through the requirements of the Data Protection Act during the application process.
This is where we would contact your employers to confirm the details that have been provided during the course of your application.
This refers to the value of your property over and above any secured loan or mortgage on your property. This is the amount of money you would receive if you sold your house after you had repaid your mortgage and any secured loans.
This refers to your current debts e.g. your mortgage, credit cards, personal loans, hire purchase etc.
This is your main mortgage. A lender with first charge over a property has a first call on any funds available from the sale of the property.
A Home Improvement Loan is taken with a view to making improvements to your home, which may increase the value of your property. An ASDA Homeowner Loan can be used for many purposes including Home Improvements.
This is your net monthly income and outgoings, we will go through this with you during your application.
This is a loan application made by more than one applicant, for example Husband and Wife.
This is the company that provides the finance for your loan.
This is the reason you would like your loan. Certain loan purposes may not be allowed or have restricted terms.
This refers to the amount you would like to borrow and the length of time you would like to repay your loan. Your Customer Account Manager will go through how much you can borrow based on your Income and Expenditure review and then find the best quote to suit your needs. The quotation will itemise the costs, fees etc that you will incur by taking out your loan.
This is the length of time you would like to repay your loan over. Certain loan purposes may have restrictions on the term you are able to have.
This is the amount you wish to borrow added to your first mortgage expressed as a percentage of the total value of your home.
This is the payment that is made to the Lender to cover the interest and reduce the outstanding balance of your loan.
This is a loan used to purchase a home or to pay for your existing home, where the property is used as security for the lender.
This is a legal document that enables us to register our charge with the land registry. This can also be referred to as a CH1.
This is an annual statement that is produced by your Mortgage lender that shows the schedule of your last 12 months mortgage repayments. This will highlight any missed or late payments.
You are in negative equity if your property is worth less than what you owe to your lender.
Anyone in your household that is over 18 but not on your loan application has to consent to the loan.
The Office of Fair Trading
Other income is any income that you may have in addition to your basic annual salary such as Child Benefits, Maintenance Payments, Child Tax Credits, Pensions.
This is insurance which can be purchased to cover you if you are unable to make your monthly repayments due to an Accident, Sickness, Unemployment or in the event of a Critical Illness or Death.
This is the discount that a local housing authority can offer you when purchasing a council house you have previously rented from them.
Lenders may wish to see evidence of payments that are made to you on a regular basis, such as bank statements, payslips or your P60. In some circumstances income can be self declared as proof of employment or accountants reference (see Accountants Reference).
This is the value of your property on the open market.
In order to be eligible for an ASDA Homeowner Loan you must fit standard criteria. You must be over 23 years of age, be a permanent resident of the UK, be a homeowner with a mortgage and be in receipt of a regular income.
This is an agreement with a value of £25,000 or less which is regulated by the CCA.
This is the timing and amounts of your monthly loan repayments.
This is a legal charge in addition to your first charge (Mortgage).
Also referred to as a Homeowner Loan. This is a loan specifically for Homeowners who can use the equity in their home to obtain a loan secured against their property.
This is the percentage of your property that a local housing authority can own.
This is your credit agreement that you must read and sign as it contains all the terms and conditions of your loan agreement.
This is the total amount repayable to the lender over the lifetime of a loan, including all interest, fees and other associated charges.
Telegraphic Transfer.
The typical APR enables you to compare rates offered by other lenders that also offer Homeowner Loans. It is the Annual Percentage Rate at or below, which we expect that credit will be supplied to at least 66% of all customers that take out a loan with us, as a result of an advert we have produced.
This is the process of assessing the ability of a prospective borrower to repay a loan. The process takes into account various factors such as your credit history, value of your property, your income and expenditure.
Loans over £25,000 which are not regulated by any Acts or Associations.
This is the contractual interest rate which will vary over the term of the loan.
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