Dopo aver preso la decisione di stipulare un prestito garantito, you may now be wondering how to actually go about the application process and how long that process takes. Obviously it will vary from lender to lender, but will also depend on how efficiently you complete the relevant forms and on whether there are any potential problems that arise.
Due to the fact a secured loan is often attached to a property, it is somewhat more involved than a standard loan application and consequently additional paperwork is required, which will slow the process down slightly. Many lenders allow you to apply for a loan online, either by completing a short application form or by requesting a call back from one of their team, if you prefer have someone to talk you through the process.
- Fill out application forms.
- A valuation is instructed.
- Confirmation of the property value.
- Signing of contracts.
- Money transfer.
Upon filling out an application for a loan, you will receive a quotation, which is subject to validation and confirmation. If you are happy with this quote and decide to go ahead, your credit reference report will be assessed and you will be required to provide proof of income and confirmation that the amount of equity you have in your home will cover the amount of the loan.
Under the Consumer Credit Act, lenders are required to grant you a 16 day period in which to consider your loan. This period begins from the point at which you receive an advance copy of your credit agreement to read through. During the 16 days, the lender is not allowed to contact you, which means you won’t get hassled into making a decision, however if you have any queries you are allowed to contact them. Halfway through, at around day 8, you will receive a credit agreement to sign and when the 16 days is up the consideration period will end and you must make a decision. Taking this consideration period into account, generally the whole loan application from start to receiving the funds can take anywhere from 3 a 6 weeks.
Before any loan amounts are paid out, the lender will contact the borrower to re-conform all of the details and at arrange transfer details. Most lenders will pay the funds by direct bank transfer into your account although some may pay by cheque if you request it.
For more information about secured loans read our article ‘Qual è prestito garantito?‘.