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Adverse Credit
This term is used to describe Credit Problems that have lead to a poor credit history. Mortgage Arrears,
CCJ's, Credit defaults and other credit debt repayment problems leads to Adverse Credit rating. When
used to describe: Adverse Credit Mortgages or Adverse Credit Loans they mean Mortgages or Loans for
people with or who have had Credit Problems and therefore have a Poor Credit Rating.
APR
Stands for Annual Percentage Rate and takes into account the amount of interest you will pay, both
annually and over the term of the mortgage. The higher the APR the more you will pay, the lower the APR,
the less you pay. This is meant to show the true cost of borrowing and adjusts the notional interest
rate to take account of all the initial fees and ongoing costs. This enables you have a clear impression
of the actual cost of borrowing throughout the entire mortgage term. Whilst this could be a good way to
compare relative deals care should be taken to ensure that the rates being compared have been calculated
on the same basis.
Arrangement Fees
These are usually charged by both the broker that you choose and the lender that provides your new
mortgage. The lender will charge Fees for setting up your new mortgage, which will cover the cost of any
work involved in arranging your mortgage. These fees can usually be added to your mortgage and therefore
you will not be asked for these upfront.
Arrears
Mortgage or loan arrears problems is a term used to describe both missed or late mortgage or loan
repayments. If you stay in arrears you are likely to end up with a default and a County Court Judgment
or CCJ. We have schemes that will still accept applications from people who have had arrears or have
CCJ's.
A.S.U Insurance
Accident, sickness and unemployment insurance (sometimes referred to as MPPI- Mortgage Payment
Protection Insurance). This is an insurance policy that is taken out by the borrower and protects
against the borrower being unable to work for these reasons. The policy will usually pay normal monthly
mortgage repayments if the borrower is unable to work due to accident / sickness or unemployment /
redundancy. These payments will normally only be made for a limited period of time - typically 6/12/24
months. The terms of these policies and the cost vary considerably from company to company.
