We’re aware that sometimes the language used around secured loans can be a little hard to understand. Evolution Money’s ‘Financial Definitions’ helps you clearly understand everything you’ll ever need to know.
Annual Percentage Rate or ‘APR’ is a yearly rate of charge that includes interest, fees and other costs involved in obtaining a loan.
After you’ve spoken with your Personal Account Manager at Evolution Money we’ll send you an application pack containing the paperwork that you will need to complete your loan.
Arrears are missed payments. If you miss a payment or are struggling to make the monthly repayment agreed it’s important that you speak to us and we’ll try our best to help you in keeping up with payments.
Bad Credit or Poor Credit are terms used when people have bad credit ratings, this can come from defaulting on a loan or missing occasional payments.
Brokers are people who search for a loan that is most suitable for you on your behalf. They will then talk with the loan provider on your behalf or refer you to the loan provider to consider your application.
Secured loans through Evolution Money can be used for various purposes, in this case a loan for a car.
All customers are given a consideration period of up to 14 days before their Credit Agreement can be put in place. This gives the customer the chance to think things over without any contact from loan companies/brokers.
This is combining all of your debt payments that you make into one loan payment (usually monthly). Consolidation offers the customer the opportunity to make one manageable monthly payment to their lenders as opposed to making multiple repayments over the month which can be harder to manage. You should be aware that by consolidating the debt(s) it may increase the total amount repayable by extending the term.
A consolidation loan might be taken out to consolidate all debts into one manageable monthly repayment. A consolidation loan through Evolution Money can help customers avoid paying continual interest and charges on other debts. – Consolidating a loan may mean you pay more back if taken over a longer term.
A CCJ is a County Court Judgment. Which refers to a court issued order stating a debt must be paid.
Your Credit Agreement will be sent to you 8 days into your consideration period. If you wish to go through with the loan then you will need to sign and return it to us.
Credit ratings are determined by credit rating agencies, it is a score of how you manage credit and is usually used to calculate what APR rates you are likely to pay.
(Direct Debit Mandate) You will receive a DDM in your Application pack. The DDM form is used to set up your monthly repayments for your Evolution Money loan.
Equity in a property is the difference between any outstanding loans (mortgage) on a property and the value of the property.
Secured loans through Evolution Money can be used for various purposes, in this case a loan to improve your home.
A homeowner is someone who owns a residential property.
Also known as a secured loan, a loan that is taken out against your property. (See Secured Loan)
Interest is the charge made by a lender on the money that you borrow. Interest can sometimes be variable and can go up as well as down.
This is the figure that determines how much interest you pay.
A loan is a sum of money that’s borrowed and has to be repaid, usually with interest.
A Loan Agreement provides the borrower with a list of terms and conditions of the loan. A Loan Agreement would also detail the amount you have requested to borrow, the APR and the term (length) of the loan.
A lump sum repayment refers to making a payment on your loan that is more than a standard monthly instalment.
A mortgage is a loan that’s borrowed to buy a property. – Also known as a ‘first charge’ (or first mortgage) on a property. Should you take out a secured loan on your property this would be considered a second charge (or second mortgage).
Is where the borrowing on a property is greater than the value of the house. Evolution Money offer loans to customers with zero or negative equity.
A Second Charge is a second mortgage/loan taken out on your property.
A secured loan is a loan that is secured against your property. The lender will then have an interest in the property for the amount of the loan provided until it is repaid.
A Self-employed loan refers to a secured loan that is designed specifically for customers that are self-employed. A secured loan through Evolution Money may be possible where most lenders will turn you away.
Term refers to the number of years you choose to repay your loan over. Evolution Money have access to a wide range of loans which offer terms of 1-15 years.
A Third Charge is a third mortgage/loan taken out on your property.
Total Repayment is the whole amount you will have repaid on your Loan once your term has ended. The figure will be the amount you borrowed plus the interest paid over the life of your term.
Evolution Money can provide access to loans from £1,000 to £20,000 over 1 to 15 years. All loans have a variable rate which means the rate can change over the term of the loan. If you have any questions please call us on 0800 781 4095 or 0161 814 9932 if calling from a mobile.