Frequently Asked Questions

In this FAQ section we have detailed a list of typical answers to questions, however, if you do not see an answer to a specific question why not try our new free service – Ask An Expert – which allows you to post question’s to our panel of experts and receive an answer. Naturally ALL information is treated Securely and as Private & Confidential.

What is Invoice Finance?

Invoice Finance encompass a number of products namely invoice factoring and invoice discounting. It is a way of using your Companies Debtor Ledger, e.g. money owed to your company by way of accounts receivable, as collateral to secure financial borrowings against.

Can I or my business get finance if I’ve been refused elsewhere?

We do have Financial products that cater for businesses and individuals that have been refused credit elsewhere or have Bad Credit .  Some of the circumstances we may consider, Mortgage Arrears, CCJ’s, Defaults, Discharged Bankrupts, Currently in an Individual Voluntary Arrangement (IVA), Threatened with repossession or previously repossessed, Winding Up Petition, Previous Company Liquidation(s), Phoenix Companies, Pre Pack Administration. All applications are considered individually and on there own merits.

How quick is a decision made?

In most instances a decision is made within minutes for more complicated financial transaction credit approval will take longer.

What about paper work?

Paperwork is boring we understand that and that’s why we do it for you. You will be asked to provide pertinent information to support your application and failing to supply information or documentation requested may harm your chances of approval.

More Mortgage & Loan Terms

 

FULL STATUS? – For borrowers who are able to provide proof of their income either by Certified Accounts or Payslips and P60.
SELF CERTIFICATION? – For borrowers who are not able to provide proof of income.
“BUY TO LET” PRODUCTS? – For borrowers wanting to purchase residential or commercial investment property.
RIGHT TO BUY? – For borrowers who are buying their property from a local authority under a Right to Buy scheme.
FLEXIBLE MORTGAGES? For borrowers wanting more control over their finances.

What is meant by Capital repayment?

Where interest and capital are paid together monthly until, at the end of the term, assuming that all payments have been made on time, the whole loan will be repaid.

What is meant by Interest Only payment?

Where only the interest on the loan borrowed is paid during the mortgage term. You must make other arrangements to repay the loan and the end of the term. e.g.; using an endowment or pension policy, personal equity plan, ISA etc.

What do you mean by Self Certification?

Self Certification is a term used when applicants are able to afford the loan repayments however, they may not have all the necessary paperwork to support their income. This may be due to difficulty in obtaining up to date certified or chartered accounts, payslips and or bank statements. N.B. You will typically pay a higher interest rate when not evidencing income.

Do you provide Buildings or Buildings and Contents Insurance?

We can arrange comprehensive and competitively priced Buildings or Buildings & Contents Insurance via our carefully selected partners.

Do you accept all types of property as security?

Yes we have schemes that cater for all types of properties. Some non-standard constructions may have limited Loan To Valuations.

What are the minimum and maximum finance terms available?

Mortgage Finance – Typically terms range from a minimum term is 5 years and the maximum term is 35 years.
Bridging Finance and short term property funding are typically lent out over 1 month up to 12 Months, where this forms or is part of a development finance facility this may run on up 24 – 36 months.
Asset Finance & Equipment leasing – Typically Finance agreements run from 12 months – 60 months.
Invoice Finance – Factoring & Invoice Discounting Contracts run over a 12 – 24 month basis. However We have providers that will allow the contract to run on a month by month basis.

What interest rate options are available?

We offer all rates available on the market. Base Rate Trackers, Flexible, Discounted, Fixed, Capped, LIBOR linked.

What is LIBOR and how is it calculated?

LIBOR ( London Inter-bank Offer Rate) is calculated by reference to the rate of interest that London banks themselves have to pay to borrow money. It is a rate that is “independent” of the Mortgage Lender; this rate is typically reviewed every quarter.

What is the Higher Loan Fee or MIG?

One-off fee payable by completion, which can usually be added to the loan. It covers the lender for the additional risk in lending a higher amount against the property value than would otherwise be the case. The fee is generally calculated at 5% of the balance of the loan above 75% of the value or purchase price (whichever is lower). Subject to the lenders product. Lenders vary

What is meant by Leasehold?

Possession of land or buildings for a term fixed in the lease.

What is meant by Freehold?

Outright ownership of land or property.

What is Title Insurance, why should I consider it?

We have arranged insurance which enables the solicitor to complete without a local search (see below) and without making a number of other enquiries relating to title, reducing the time it takes to complete. The flat fee covers us for the cost of this insurance.

What is a Local Authority Search?

Searches carried out by the solicitor, through the Local Authority, relating to the property to be purchased. A local search only relates to the property itself, and does not provide information about any planned developments in the neighbourhood, except for major roadwork”s within 200 metres of the property.

How much can I borrow?

How much you can borrow is often determined by your ability to repay and the type of financial product you are applying for. However,  Enable Finance arrange finance from £5,000 through to commercial borrowing of up to £50 million . Credit limits are subject status security provided.

Typically how long must I have been employed to obtain a residential mortgage?

Applicants must normally have been employed with the current employer for a minimum of 3 months. A reference in acceptable format is required, or latest automated P60 and last 3 month’s payslips, unless self certification has been chosen. Verification is also required for previous employments if the applicant has been with the current employer for less than 6 months.

Stamp Duty and Land Tax Rates:

Residential land or property Stamp Duty Land Tax (SDLT) rates and thresholds

Purchase price/lease premium or transfer value

SDLT rate
Up to £175,000 (until 31 December 2009) Zero
Over £175,000 to £250,000 1%
Over £250,000 to £500,000 3%
Over £500,000 4%

If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for £180,000 is charged at 1 per cent, so £1,800 must be paid in SDLT. A house bought for £350,000 is charged at 3 per cent, so SDLT of £10,500 is payable.

Commercial Property & Non-residential land or property rates and thresholds

Purchase price/lease premium or transfer value (non-residential or mixed use) SDLT rate
Up to £150,000 – annual rent is under £1,000 Zero
Up to £150,000 – annual rent is £1,000 or more 1%
Over £150,000 to £250,000 1%
Over £250,000 to £500,000 3%
Over £500,000 4%

For more information on stamp duty and land tax issues in detail please visit HMRC here

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