Advance Copy Credit Agreement
The Consumer Credit Act 1974 requires Nemo to allow you a consideration period of up to 16 days. You will receive an application pack at the beginning of this period containing an Advance copy of the credit agreement – this document is a copy of the credit agreement but the facility to sign has been removed. The actual credit agreement will arrive for you to sign after 8 days. If you have any questions about your advance copy of the credit agreement speak to your loan officer.
AIP
An AIP or ‘Acceptance in Principal’ refers to an offer Nemo makes to you subject to us processing and underwriting your loan application.
Application Pack
After you have spoken to one of Nemo’s Loan officers you will be sent an application pack containing documents detailing the information you discussed and including the paperwork you will need to complete your loan.
APR
When you are looking for financial products including loans or credit cards, you will often see an APR quoted. Annual Percentage Rate or APR is a yearly rate of interest, including fees and other costs involved in obtaining loans and other financial solutions. Rates are calculated in a uniform way taking into account the average compound interest rate over the length of your loan.
Arrears
Arrears occur when you fail to make your agreed repayment. When you take out a loan, you will agree a repayment schedule. This is usually in the form of a monthly direct debit from your bank account. It is important that you keep your repayments up to date. Should you fail to make your full monthly repayment, you will then be in arrears. If you find yourself unable to make your monthly loan repayment, it is important that you contact your lender as soon as you can so that they may assist you.
Brokers
A broker is an individual or company who will, usually for a brokering fee, search for a product that is most suitable for you, in this case a secured loan. They will then liaise with the provider of that product on your behalf to apply for and obtain your loan.
BSQ
A BSQ or Building Society Questionnaire is a document provided by your mortgage company to Nemo, giving details of your mortgage. Typically we would ask for a BSQ if your mortgage is not showing up on a credit search and we therefore have no way of verifying the outstanding balance and monthly payments. Your loan officer at Nemo will organise a BSQ if one is required and Nemo will cover the cost your mortgage company charges for providing the information.
Capital Repayment
A capital repayment, also known as lump sum repayment, refers to making a payment on your loan that is larger than a standard monthly instalment. For more information see ‘Can I make a Lump Sum Payment’ in our Q&A section.
‘Cash Out’
Cash out refers to any funds received from a Nemo loan that are paid as a personal cheque to the borrower/s. For example if you borrowed £40,000 and consolidated £35,000 of other credit the ‘cash out’ would total £5,000.
CCA
The Consumer Credit Act 1974 (CCA) affords the borrower certain protections when taking a secured loan such as providing all customers a consideration period.
CCJ
A CCJ is a County Court Judgement. This refers to a court issued order saying a debt must be paid.
Consent (from your mortgage company)
Some mortgage companies place a restriction on the Land Registry stipulating that any subsequent lender must first obtain their permission before a loan can be secured. If your mortgage company has placed such a restriction then Nemo will require their consent before we can pay out your loan. Your Nemo Loan Officer will organise this for you and Nemo will cover the cost of obtaining this consent if required.
Consideration Period
Under the Consumer Credit Act 1974 Nemo is required to provide all customers a consideration period. This is up to 16 days during which time the customer will not be contacted by Nemo to give them a chance to consider all options and make a decision without interference. Customers are able to contact Nemo during this period if they have any questions. The consideration period starts when the customer receives the advance copy of the Advance Credit Agreement which is contained in the application pack. The Credit Agreement for the customer to sign will be sent 8 days later. The consideration period ends either naturally after the 16 days have elapsed from when the advance copy of the credit agreement is sent or when your Loan officer receives your signed credit agreement, whichever occurs first.
Credit Agreement
The credit agreement will be sent to you 8 days after the Advance Copy Credit Agreement. If you want to take out a Nemo loan you will need to sign and return it to us.
Consolidation
Combining all your debts into one loan is usually referred to as debt consolidation and can often help reduce monthly payments. Consolidation can be helpful if you have multiple personal loans and credit cards which you'd like to pay off. Instead of multiple repayments, these will be wrapped into one affordable monthly payment and you might even have more disposable income. Repaying your borrowing over a longer term may increase the overall interest charges.
Deed of Postponement
A Deed of Postponement is a document which allows Nemo to postpone their second charge while changes are made to the first charge. Mortgages are the first charge that Nemo takes second charge behind. If, for example, you are changing mortgage lenders the Deed of Postponement prevents us taking first charge (which we are unable to do) during the brief gap on the land registry as one mortgage lender is removed and another added. If you require a Deed of Postponement as you are re-mortgaging or moving home contact customer services team on 0845 371 0461.
Debt Consolidation Loan
A debt consolidation loan might be suitable if you have multiple loans or credit and store cards and want to consolidate several monthly payments into one monthly repayment. You will no longer need to worry about what needs to be paid and when, and you'll even know the exact amount and date payment will go out each month. A debt consolidation loan could help reduce your monthly repayments freeing up more of your disposable income.
DDM
DDM stands for Direct Debit Mandate. You will receive a DDM in your Application pack. The DDM form is used to set up your monthly repayments for your Nemo loan.
DTI
DTI refers to Debt to Income ratio. This is a calculation used by Nemo to ensure that we only make loans available to those that can comfortably afford them.
Equity
Equity is the difference between any outstanding debts on a property and the value. For example if a house is worth £150,000 and the only debt outstanding is a mortgage of £100,000 then there is £50,000 worth of equity.
Fees
Fees refer to charges made by Nemo Personal Finance for some services we provide. For a full listing of Nemo’s fees see the ‘Our Fees’ section of the website.
FISA
FISA stands for the Finance Industry Standards Association. FISA act as a voluntary self-regulatory body for the credit industry. Their aim is to improve the standard of the marketing and supply of credit.
FSA
FSA stands for the Financial Services Authority. Their primary aims are to promote efficient, orderly and fair markets and to help retail consumers get a fair deal. They regulate many financial services markets including general insurance and therefore regulate the sale of payment protection insurance by Nemo.
Further Advance
A further advance is a term used for taking further borrowing on your Nemo loan. Subject to underwriting we can provide you with extra funds to complete home improvements or to consolidate any credit you may not have cleared first time around. If you’d like to apply for a further advance call our further advances team on 0800 019 8485.
Gross Income
Gross income is your pay before tax is deducted.
Home Improvement Loan
A home improvement loan will give you the cash funds you need to make improvements to your property. You could add extra space to your home with an extension, loft conversion or conservatory, or you might like a new kitchen or bathroom. Whatever the home improvements are that you'd like to make, a home improvement loan will give you the finances needed to make the changes you want.
Homeowner
A homeowner is someone who owns a residential property.
LIBOR
LIBOR stands for London Inter-Bank Offered Rate. This is the rate of interest in the London wholesale money market and therefore the rate at which banks and building society borrow money from each other.
Loan
A loan is a sum of money which is borrowed and has to be repaid, usually with interest and often with other associated costs. If you would like to borrow money to make home improvements or consolidate debt, there are many lenders in the market place which are able to help you.
Loan Agreement
A Loan Agreement, sometimes called a Credit Agreement, sets out the responsibilities of both the lender and the borrower. A Loan Agreement would normally provide the borrower with a comprehensive list of terms and conditions of the loan. A Loan Agreement would normally detail the amount you have requested to borrow, the APR and the term of the loan. Expected repayments will also be recorded on your Loan Agreement.
LTV
LTV is short for loan to value ratio. When you take out a secured loan, this is the combined sum of your loan and mortgage as a percentage of the value of the property against which your loan is secured.
Maximum Liability
Some mortgage companies offer flexible mortgages that allow a balance that has been paid off the mortgage to be re-borrowed up to the initial loan limit. The maximum amount you can borrow is referred to as a maximum liability figure as it is the maximum figure your mortgage company is liable to lend to you. If you have this type of mortgage Nemo needs to use the maximum liability figure as your mortgage balance for our LTV calculation as a mortgage company can release the extra money to you after Nemo has made its loan. If this were to happen there could be more borrowings than the value of the property. As Nemo does not lend on negative equity we ensure that your Nemo loan plus the maximum liability figure does not exceed the value of your home. Your Loan Officer will organise obtaining confirmation of the maximum liability and Nemo will cover the cost charged by your mortgage company for the information.
Mortgage
A mortgage is a loan which is usually borrowed to buy a property. This would normally be called the first charge (or first mortgage) on a property. A subsequent secured loan would be considered a second charge (or second mortgage).
Mortgage Deed
A Mortgage Deed is the important legal document by which a property owner grants security for repayment of a loan. Your mortgage deed must be witnessed and it must be registered with the Land Registry. A mortgage can also be referred to as a Legal Charge or, in Scotland, will be called a Standard Security. When you repay your mortgage or secured loan, the Mortgage (Legal Charge / Standard Security) will be removed from your property.
Negative Equity
Negative Equity refers to a situation when the borrowing on a property exceeds the value of the house.
Non Regulated Loan Agreement
As of the 6th April 2008 all new Nemo loans are regulated by the Consumer Credit Act. If you are an existing customer and you took a loan over £25,000 with us prior to the 6th April 2008 then your agreement is a Non-Regulated loan agreement. Whether your loan is Regulated or Non-Regulated will affect some aspects of your loan such as your early settlement charges and lump sum repayments. If you are an existing customer with a Non-Regulated loan agreement and you want to apply for a further advance be aware that this will result in your existing Non-Regulated agreement becoming a Regulated agreement. All loan agreements from Nemo Personal Finance Limited will specify whether they are Regulated or Non-Regulated. Should you have any queries our customer services team can give you more information on 0845 371 0466.
Payment Protection Insurance
Payment Protection Insurance is for life’s ‘what ifs’. Also known as life, accident sickness and unemployment cover, payment protection insurance is usually taken to cover financial commitments, should you become unable to work due to accident, sickness or unemployment. Click here for more information on Nemo’s payment protection insurance.
PPP
PPP stands for Payment Protection Policy. Nemo is regulated by the FSA for arranging and advising on general insurance and our Loan Officers can provide you with a personalised advice service for PPP insurance. To find out more about our Payment Protection Policy click here.
Regulated Loan Agreement (secured)
As of the 6th of April 2008 all new Nemo loans, regardless of their amount will be regulated by the Consumer Credit Act 1974 (CCA) and will therefore have a regulated loan agreement (Prior to that date only Nemo loans of £25,000 and under are regulated). The CCA grants a borrower certain rights which are not necessarily available for loans not regulated under the CCA. These include the need to provide you with an advance copy of your loan agreement to give you a period of time to consider your loan. During this period neither we nor the person arranging the loan for you is allowed to contact you, although you may initiate or request contact. At the end of this period you will be sent signature copies of your loan agreement. The consideration period will end either when you, the customer, returns the signed loan agreement or 8 days after the signature copy of the loan agreement is sent, whichever is sooner.
Second Charge
A Second Charge is another name for a second mortgage on your property. It is a second claim on your home.
Secured Loan
A secured loan is a loan that is secured against your property. The lender, in this case, Nemo then has an interest in the property for the amount of the loan provided. To find out more click here.
Security Release Fee
A security release fee is a fee charged in certain circumstances for Nemo to release its charge on your property if you have repaid your loan with Nemo. The fee is payable on Non-Regulated loans (loans of £25,100 or more taken prior to the 6th of April 2008). For a full break down of fees charged by Nemo click here, or if you have any questions about a security release fee call our customer services team on 0845 371 0461.
Settlement Quotation/Charge
A settlement quotation is a final figure required to settle your loan with Nemo. It consists of any settlement charge payable for repaying your loan early as well as the amount of your loan outstanding and any interest. If you have any questions about settlement figures or how they are calculated please contact our customer services team on 0845 371 046.
Speak With’s
Our Speak With team will usually be the last department within Nemo that you need to speak to before your loan is paid out to you. The team will contact all borrowers to re-confirm the details of your loan and to organise your direct debit. They will also check you have been happy with your loan process and answer any final questions you may have. All customers go through this final stage and then progress on to underwriting.
Statement of Account
Nemo can provide a statement of your account on request. This will show your account history over the past year. To request a statement of account please call our customer services team on 0845 371 0461.
Standard Security
Standard Security is the Scottish legal term for what is commonly known in England as a Mortgage Deed.
Term
Term refers to the number of years you choose to repay your loan over. Nemo offers terms of 5-25 years to help find the right monthly repayment for you. Please be aware that repaying your borrowing over a longer term may increase overall interest charges.
Total Amount Payable
Total amount payable is the total amount you will have repaid on your Nemo Loan once your term has naturally ended. This figure will be the amount you borrowed plus all the interest paid over the life of your term. The figure is calculated on the assumption that interest rates do not change.
Transfer of Charge
If you are moving house then Nemo can, subject to underwriting approval, provide a transfer of charge (TOC) which moves our charge on the land registry from one property to another. To discuss a transfer of charge call customer services on 0845 371 0461.
Transfer of Equity
If you want to add or remove a person from your Nemo Loan we can, subject to underwriting approval, provide a transfer of equity (TOE) to enable you to do this. To discuss a transfer of equity please call our customer services team on 0845 371 046.
TT
TT stands for Telegraphic Transfer. When we pay out your Nemo loan, for a small fee of £30, you can opt to have your cash-out transferred into your account within 24-48hrs. If you would like to have a telegraphic transfer then you need to let us know when you talk to the ‘speak withs’ department.
Valuation
A valuation is an appraisal carried out by a FISA registered surveyor to determine the value of your property. As Nemo offers secured loans that rely on equity we need to perform a valuation to assess the terms of your loan. Nemo covers the cost of the valuation, which is only for the benefit of Nemo.
Variable Rate
Nemo offers loans from £10,000 to £100,000 over 5 to 25 years.* All new Nemo Loans have a variable rate which means the rate can change over the term of the loan. If you have any questions about rates speak to our customer services team on 0845 371 0461.
*Repaying borrowing over a longer term may increase overall interest charges. Some of Nemo’s products are repayable over a term of 10-25 years.
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