Secured Loans & Mortgages

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Impaired credit
Specialist loans for customers with credit problems that disqualify them from using the lenders' standard products. There are lenders who specialise in loans for these borrowers, these are also commomly reffered to as 'non-status' loans.

Indemnity Guarantee Premium
This is an insurance policy designed to protect the lender (the mortgagee) against loss in the event of you defaulting and ceasing to repay your mortgage. The policy may be insisted on by the lender at the start of the loan, but it"s usually the borrower (the mortgagor) who pays the premium.

Index tracker mortgage
The interest rate tracks an index such as the base rate or LIBOR and often has a set percentage added to it.

Interest accrual rate
The rate at which interest accrues on a mortgage.

Interest only mortgages
Your monthly payments to your lender are simply made up of interest. You do not pay off any of the mortgage during the term of the Loan. You pay off the mortgage finally using the proceeds of a separate investment plan for example, an endowment, personal pension or PEP and so on. A number of commercial mortgages lenders will give businesses interest only free periods at the start of the mortgage.

Interest rate
This is the percentage of the loan a lender charges each year for the privilege of borrowing the money. This usually depends upon both the economy and the Bank of England base rate. This means the interest rates can increase or decrease due to certain factors. If interest rates raise this makes it more expensive to borrow money and therefore reduces the demand to borrow money. This is one of the major ways the government uses of managing the economy so interest rates can vary.

Interest rate cap
A limit on the amount interest can rise or fall during a specified period of time on a variable rate mortgage.

Interim interest
Any payment due for the period from the day the mortgage began up to the first payment date.

ISA mortgage
A mortgage loan funded by contributions to an Individual Savings Account. ISAs provide tax-free growth, generated mainly by stock market investment. The ISA aims to repay the loan's capital at the end of its term, but the interest element must be cleared separately as you go along.

Great Rates Available Today On Secured Loan UK