• Home
• Personal Loans
• Secured loans
• Tenant Loans
• Unsecured Loans
• Jargon Buster
• Links

Personal Loans

jargon buster

The Loans marketplace is full of jargon and Express Loanline brings you this Loans Jargon Buster, a small selection of Plain English definitions for Loan terms.

A | B | C | D | E | I | N | P | S | T | U | W

Adverse Credit
This term is used to describe Credit Problems due to a poor credit history. The borrower may have CCJ's, Mortgage Arrears and other credit debt repayment. Abusing credit or failing to meet credit repayments leads to Adverse Credit. When used to describe: Adverse Credit Mortgages or Adverse Credit Loans they mean Mortgages or Loans for people with Credit Problems or Poor Credit Rating.

APR
APR or Annual Percentage Rate is the actual cost of interest on a loan/mortgage and takes into account the amount of interest you will pay and the term of the loan/mortgage. So the higher the APR the more you will pay, the lower the APR, the less you pay. This is the easiest way to compare loans to gain the best rate for you.

Arrears
Mortgage Arrears is used to describe missed, late or under paid mortgage repayments. If you stay in arrears you are likely to end up with a County Court Judgment or CCJ. This can also be described as defaulting on your mortgage or Mortgage Defaults. A limited number of lenders will consider lending credit to people with previous credit problems.

back to the top

Bad Credit
This another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to a Bad Credit Rating. Bad Credit is more of an American term with the UK more commonly using Poor Credit. When used to describe: Bad Credit Mortgages or Bad Credit Loans they mean Mortgages or Loans for people with Credit Problems or a Poor Credit History.

Bankruptcy
Discharged From Bankruptcy - After a period of time a Bankrupt Individual can be discharged from bankruptcy. This then releases them from their financial obligations. There are some lenders that will provide mortgages for ex-bankrupts.

Black Listed
All your credit history will be stored on databases by credit reference companies. A lender will check these to find out your credit status. If you have a severe credit history and your record will be black listed to note severe risk. Some lenders will still lend on this but the interest rate will be high until you can improve your credit history.

Bridging loan
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.

back to the top

CCJ or County Court Judgment
If you have not made payment on any debt you have then you will be taken to Crown Court. If the debt isn't satisfied then a decision or judgment made in the County Court, normally for the non-payment of that debt will be registered on your credit file as a CCJ. If the debt is paid or satisfied and a satisfaction certificate obtained it will be noted on your credit file. Having unsatisfied CCJ’s will seriously effect your credit rating and limit the lenders available to you.

Credit Check
Before lenders consider lending you credit they will undertake a credit check. A credit check determines your credit history whether you have any CCJ's, defaults or outstanding credit card bills using the services of a credit agency (Experian or Equifax). Most high street lenders don't want anyone with a poor credit history.

Credit Scoring
This process is used by most lenders to determine what level of credit risk you are. They use a scoring system based on credit history; good or bad, length at current address, security, employment, income and answering these questions gives them a score or Credit Rating. Mainstream lenders only want high scores. However there are lenders who will find credit to suit your score even if it is a poor credit rating. The majority of your credit history and suitability will be on a national credit database but it is up to individual lenders whether the risk is acceptable.

Credit reference agency
When assessing your application, a mortgage lender will study your records. These records are held centrally by credit reference agencies, and contain information for many different aspects of your life.

back to the top

Debt Consolidation
To consolidate your debts means instead of several debts where you are struggling to meet all the repayments you have just one manageable debt with a repayment you can afford. However you are actually increasing your debt and paying it over a longer period allowing lower monthly repayments.

Defaults
If you have defaulted on a loan or mortgage it means that you are more than 30 days behind the date your repayment was due. This will be marked on your credit record and would lead to a CCJ if no payment was received or received very late.

Equity
This is the difference between the amount you owe on your current mortgage and the current value of your property. This amount can be used in a remortgage to allow money for home improvements, a new car, holiday of a lifetime or reduce your monthly premiums.

back to the top

Impaired Credit
This refers to the credit rating of an individual who may have CCJ's or maybe behind with payments to personal loans or a mortgage. This phrase is also applicable to someone who has
been declared bankrupt.

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.

back to the top

Negative Equity
This means the value of your property is lower than the amount you owe on your mortgage or secured on it. This will be a problem if you want to move or maybe considering either a Remortgage or a Secured Loan.

Non Status
This another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to being classed as Non Status rather than Status. When used to describe: Non Status Mortgages or Non Status Loans they mean Mortgages or Loans for people with Credit Problems or a Poor Credit History.

back to the top

Personal Loan
A personal loan is a term used to cover secured loans and unsecured loans. This is a loan taken out by a person or persons hence the name Personal Loan.

Poor Credit
This another term used to describe Credit Problems due to an adverse credit history. CCJ's, Mortgage Arrears and other credit debt repayment problems leads to a Poor Credit Rating. Poor Credit is more of an UK term with America more commonly using Bad Credit. When used to describe: Poor Credit Mortgages or Poor Credit Loans they mean Mortgages or Loans for people with Credit Problems or a Poor Credit History.

back to the top

Secured Loan
This is a Personal Loan that uses equity in your home for security to allow better interest rates than being an Unsecured Loan. You can use this loan for debt consolidation or home improvement. However, your home is at risk if you fail to keep up repayments secured on it.

Sub Prime
This is a term used by lenders to describe the sector of Mortgage Problems. A sub prime mortgage is the same as a Non Status Mortgage, a Non Standard Mortgage, an Adverse Credit Mortgage, a Poor Credit Mortgage or a Bad Credit Mortgage. Put simply, it is a Mortgage for People with Credit Problems.

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. Thus the property is known as the 'security'.

Self Employed
An individual who works for himself/herself. This will include partners in businesses and professional practices such as lawyers.

back to the top

Tenant Loan
A Non-Homeowner or Tenant will take out an unsecured loan because they have no home to act as security for the Loan. This is a Personal Loan for Tenants and Non-Homeowners. Interest Rates are usually higher than Secured Loans but Express Loanline aims to find you a competitive rate Tenant Loan or Unsecured Loan.

Unsecured Loan
A Non-Homeowner or Tenant will take out an unsecured loan because they have no home to act as security for the Loan. This is a Personal Loan for Tenants and Non-Homeowners. Interest Rates are usually higher than Secured Loans but Express Loanline aims to find you a competitive rate Tenant Loan or Unsecured Loan.

Wedding Loan
This can be a Secured Loan or Unsecured Loan if you're a Homeowner or a Tenant Loan if you're a tenant or Non-Homeowner. An average church wedding with all the trimmings can cost about £10,000. A wedding loan can be used to make your or your daughters special day a memorable one.

back to the top