The Glossary
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The
Letter A
This
section provides information on terms and phrases beginning with
the letter A
At the Grabber we know finance is full of
confusing terms and phrases, and so on this page we explain:
Ability to Pay |
Adverse Credit |
APR |
Arrangement Fees |
Arrears |
Application
Form
The term ability to pay means simply just that, before borrowing finance
you should check you have a sufficient income to
meet its repayments. A simple way to ensure you have sufficient
income to meet your obligations is to compare your outgoing
expenses against your incoming. If you have more coming in than
is going out, will the difference cover the cost of the finance
you are considering applying for.
When agreeing to
an application the lender is taking a risk that the information
you provide is accurate and that you will repay your end of the obligation.
When you apply for finance your obligation is to provide honest
information about your situation and this includes your ability
to pay the repayments on time and in full.
If you are after applying for finance the Grabber provides a
selection of
application forms and you will not be turned away because of
problem credit ratings.
Adverse Credit is a term used to describe a low rating in credit
scoring due to a poor credit history. County court judgements,
mortgage defaults, loan arrears or other credit repayment
problems lay on the financial record and may lead to a
poor rating. Moving frequently and having a poorly rated job can
also hurt credit scores as also can not being on the electoral
role.
Credit scoring is used by lenders to determine
the level of risk you are before agreeing to lend fresh finance.
Your credit history and suitability will be on one of several
national credit databases but it is up to the individual lenders
whether the risk you present is acceptable.
You can find finance to suit your score even if you have a
problem credit rating, there are plenty of lenders who
specialise in lending to people with adverse credit ratings, you
just need to spend the time finding them.
To help you save time we provide a selection of
application forms where you will be considered on your
individual merits and not dismissed out of hand because of
credit rating.
APR stands for annual percentage rate and means the total cost of
any finance taking into account all the costs, interest charges
and arrangement fees. The APR is
usually expressed as a percentage amount and means repayments
with a higher rate will be greater than with a lower rate.
Showing the APR is a legal requirement and all lenders of
finance must make it clear what it is for their financial
products. This makes rate surfing easier as APR is a clear
indicator for you to compare products from
one lender to another.
The actual rate you are charged could vary not only with
individual lenders but also based upon your credit rating.
Arrangement fees is the term used to describe the charges from
lenders to cover any setting up costs that finance
products generate. Fees are charged for most
UK finance products
including loans,
mortgages, insurance, credit
cards and consumer credit. The actual amount charged can vary greatly from lender to
lender and is dependant on the financial product, and can be
used as a valid way to compare lenders.
Lenders
charge fees for setting up mortgages for customers to
cover any work involved in arranging the mortgages. This will
then be included in the over all amount lent for the mortgage,
although this is a standard practice some lenders do advertise
mortgage products where the fees are waived or cancelled to
attract new customers.
When buying property there
are other legal costs to take into consideration and these can easily be over looked when saving up, the
Grabber has a
mortgage section for those interested.
Arrears is the term used to describe missed or late payments
that are due on financial products. If borrowers stay behind and thus in arrears on repayments they are
likely to end up with a County Court Judgment (CCJ). This will
certainly adversely affect their credit status and make any further
applications be viewed less favourably than
before.
Arrears can also be described as defaulting.
If you are finding difficulty with repayments contact the
lender of the finance product immediately, this can reduce
charges for arrears and working together a repayment
schedule could be arranged. This would be tailored to your
ability to pay and thus reduce the probability of creating further
arrears. Most finance lenders have departments or sections that
can assist customers with this as arrears and defaults are part
of financial life.
Application forms are a written application for
finance products in the guise of a form so all the relevant
information can be viewed easily. Most financial needs can now
be sorted online, and the amount of information required for
each application will vary greatly from site to site.
When entering sensitive information, a credit card number for instance, be sure of working on a secure site. Look for a
Web address that begins with https, and a tiny locked padlock at
the bottom right of the screen.
To
complete one of our online application forms, click on one of
the navigation links or visit our
application form pages.
Got a piece of jargon you want explaining, it's time to let The Grabber loose
Associated Pages
adverse
mortgage |
adverse
remortgage
|
