Morgage jargon explained

Saria

Hi,

I am currently trying to apply online for a First Direct mortgage (remortgaging) and am struggling with some of the forms I need to fill in. Was wondering if someone could explain the following to me?

We have to list how many "secured loans, personal loans, credit / store cards and hire purchase agreements" we have. Would a student loan be one of these, and would that be a personal loan then?

When filling in the details for the loans, it mentions "Agreement purpose". What exactly does this mean and what am I supposed to fill in here?

Further down in the Monthly Outgoings section it then also lists these:
- Unsecured loan payments
- Accumulative credit card balance(s)
- Credit card payment

I am getting confused as what needs to be put in where. We have 4 credit cards between us, only one has an outstanding balance with 0% interest (so do I put that outstanding amount in "Accumulative credit card balance(s)" and then the monthly repayment in "Credit card payment"?).

As mentioned before, we have 1 student loan, so that would just count as a personal loan?

And then we have one loan where we pay for the purchase of a drumkit (0% interest, monthly payment, 5 months left to pay). What type of loan would that be? Personal, secured or unsecured? I don't understand the difference between all these, sorry!


I appreciate any help with this, as it is giving me a headache haha!

ACG

Student loan - ask First Direct where they would expect you to put those details.

Agreement purpose is presumably the reason you took out the loan/CC - car/wedding/holidays etc.

- Unsecured loan payments - The monthly repayments of your loans.
- Accumulative credit card balance(s) - The balances of your credit cards. As it does not state 0% deals to be excluded, I would include those balances.
- Credit card payment - The amount you pay each month on your credit cards.

Personal loans are those that you take out and are NOT secured against your home. Secured loans are secured against your home, ie if you stopped paying, they could repossess your home.

Why not call first direct and speak to them? That is what they are there for.