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Personal Loans Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

 

 

 

 

Term

Description

A

APR

Annual Percentage Rate. This is the total charge for the loan including fees and interest expressed as a percentage, which allows you to compare across the market.

APR Representative

An APR at or below which we reasonably expect that credit would be provided under at least 51% of the consumer credit agreements which will be entered into as a result of the advertisement

Affordability

How much you can afford will depend on the total monthly outgoings from your income and how much is left. The important thing is to be realistic and not take on too much. Budget planners are essential.

C

 

Credit scoring

 

 

This is a process that Santander UK plc and most banks use when making decisions about lending money. We use the information you provide in your application (e.g. age, job, existing financial commitments).

To do this, credit checks are also made at credit reference agencies to check how you've managed credit with other lenders. And if you are an existing customer we'll also look at your accounts. All these factors affect our decision.

Credit reference agency

Credit reference agencies are independent companies that collect information from lenders on how individuals manage their money.

Credit Rating

Your credit ratings can change according to how you manage your money. You can improve your chances of getting credit by:

  • Paying off any current debts on time to show you are committed to future repayments
  • Not constantly applying for credit as this will show on your record and reduce your credit score
  • Making sure you are on the electoral role as many lenders use this to check who you are
  • Never missing out any previous addresses
  • Settling any outstanding debt and ensuring your credit file reflects this, as unpaid credit will remain on your file for six years
   

 

D

 

Direct Debit

Direct Debit is an automated payment system that allows you to pay off your loan easily every month. We require all our customers to have a Direct Debit set up when taking a loan with us, and most banks operate in the same way.

Personal loan Direct Debit mandate

 

F

 

Fixed rate loans

These are fixed and can't be changed by the lender or the customer for the term agreed. Even if the Bank of England change the base rate, your loan will remain unchanged giving you added peace of mind.

 

I

 

Interest rate

Interest is the amount we charge to lend you money. The Interest Rate will be fixed over the term you choose so it doesn't go up or down. The full cost of your loan can be compared using the Annual Percentage Rate (APR) given by Santander and other lenders.

 

 

L

Loans

Loans are either secured or unsecured and are both ways of borrowing money. An unsecured personal loan is not secured against the value of your home or any other asset. A secured loan lets you borrow against the equity in your home.

T

Terms and Conditions

It's important that you read the Terms and Conditions presented to you before accepting credit. These set out the way your product will work and the contract between you and the lender.