New Unsecured Loan product up to £25,000 launched

A new unsecured loan products was launched this week giving Homeowners the option to borrow up to £25,000 at rates from 9.4% - 12.5% APR over periods from 1 to 25 years. The loan is only available through a limited number of brokers but we are pleased to say that Choice Loans will be able to offer it to our clients. The primary requirements are

• Client must be a homeowner in the UK (though the loan is not secured on the property)
• Client must be aged 18-75 (at the end of the term)
• Client must have a minimum income of £10,000 p.a. (2 payslips required or Accountant's reference for Self Employed)
• Retirees are accepted with bank statements
• Those on benefits also accepted with Award letters
• No Defaults or CCJs in the last 2 years
• Those in a Debt Management plan or IVA are also eligible depending on their overall profile
• Client must have a frozen pension pot of at least £20,000 e.g. a pension from a previous employment or a privately funded pension that is no longer being paid into

The Unsecured Loan market has been a desolate place for Brokers in the last 13 months since Lloyds Black Horse Finance and CitiFinancial pulled the shutters down on their market activity. In reality the market is in two tiers with the High Street Banks and Supermarkets like M&S or Sainsburys doing the best deals but they a) don't go via Brokers and b) Require fairly spotless credit records before they consider lending. The tier that Brokers can access is made up of private Lenders who a) charge much higher rates and b) only have marginal more flexibility on credit scores for their successful applicants. In short, if you had any defaults, or even so much as a late payment in some cases, the chances of getting unsecured loan credit was very remote. Guarantor Loans had consequently become quite popular as people were forced to lean on the credit rating of others (Homeowners) to borrow themselves and repair their credit score but this new product offers some extra options to Homeowners who don't qualify for (or just don't with to take) a Secured Loan. One other relevant feature is the fact this loan product works on a "lifestyle" underwriting basis which we understand to mean it's more about where you are now rather than what you have done in the past. For this reason, even clients in a DM program or even with an IVA are still eligible if they meet other criteria and both Employed and Self-Employed (with accounts) people may also apply. To apply contact us direct on 0845 1260350 or complete our online Secured Loan application form.