as you probably very well aware of long term loans they can vary in the amount of time that you take the on average loans can be taken over 3 to 5 years. But should you be boring a lot more money than the normal 3 to £5000 if we’re talking somewhere around the £15,000-£20,000 mark you can expect to see a much longer term loans can be paid over an eight-year period this will of the help keep your monthly instalments at a manageable level.
Some the criteria that you will need to fill to be eligible for a long-term loan are having a good credit score is long-term loans are associated with having a much higher balance than you would see on an average loan to this will need to reflect in your credit score you will need a higher than average credit score but this will also result in you getting a better than average interest rate on average an interest rate for a long-term loan is between 3.66% up to 3.8%.
What can I borrow the money for?
Most lenders will not require any proof or will not give any guidance on what you can use the money for nine times out of 10 alone will just be classed as debt consolidation as long as you can afford the monthly instalments on time and in full every month the lender is happy.
Where can I find information about default charges?
Each lender will need to provide you with details of how you can pay your loan what default charges you get will receive and what interest rate you will be paying across the term of your loan this will be sent out to you in your welcome pack for each loan. This is part of the financial service authority guidelines that each lender must follow should you not receive this in your welcome pack please contact your lender straightaway and advise you have received the relevant information and they will send them straight out to.
What fees will have to pay?
This will vary greatly between lenders some lenders do not charge a fee at all some lenders will charge an administration fee but this will not be an upfront fee this will be a fee that is included within your total loan and can be paid off with the balance on a monthly basis on average we tend to see an administration fee of about a hundred pounds attached to most loans. Please note that if anyone ever asked you for an upfront fee to “approve” your loan or “guarantee”your loan this isn’t something that an honest lender would do. If you do come across this please notify us straightaway and we will add them to the list of lenders that we will never advise anyone to use. More often than not you will find this is actually a broker you’re dealing with and this is how they make their money as well as a commission for referring this odyssey means that the broker will not be working on your behalf and their main focus is on the money personally I would make sure you stick away from that.
What can I do if I wish to complain?
If I ever have a complaint with the lender I contact them directly to start and see if they can resolve if your lender can’t resolve your complaint to what you feel is a satisfactory level you’re well within your right to contact the FSA and make a complaint directly with them. I would suggest by contacting your lender directly most the time they will be to resolve your query or complaint to a satisfactory level.
Can we interest rate be varied?
This again is very much down to the lender’s requirements some lenders will allow you to vary your interest rate depending on your busy periods within your year some lenders will even allow you to have one or two month payment breaks over the term of your agreement please note that if they do allow you to do this they will still charge you the interest rate on a monthly basis this will mean the overturning agreement you will pay back extra money. Some lenders will even offer you a two month payment break at the start of your agreement this isn’t as good as it sounds at this will add an extra three or 4 pounds to each and every single month instalment that you make to them this in turn making sure that they increase their profits from each and every loan.
What I do I move house?
You do have an obligation with each and every lender to make sure that used supply them with accurate details at all times so should you move house change your telephone number or change your banking details is down to yourself to contact your lender directly and advise of your changes this way you can also make sure that any loan statements or any of your personal post does not fall into wrong hands.
What if I can’t keep up my loan repayments?
If you can’t keep up with your loan repayments you do have several options available to yourself first port of call is to contact your lender directly and advise your struggling with the monthly instalments some lenders will adjust your monthly instalments to reflect what you can afford to pay back on a monthly basis please note that this will also extend your term with that lender and probably the amount of interest that you end up paying back. You’re never advise justice to stop paying your agreement as this will result in interest being charged on the agreement and missed payments showing on your credit file this will make obtaining credit further down the line a lot more difficult.
What happens if I do default?
There are many options for the lender should you fail to make your monthly payment and default on the agreement nine times out of 10 your loan will be passed on to a debt collection agency who will contact you for the debts or can even end up in court please bear in mind always contact your lender should you have any problems.