FAQ- What is Secured Loans ?

What can I use a FIRSTPLUS loan for?
The flexible nature of FIRSTPLUS loans means they're useful in a range of situations and for many different purchases. For example, making home improvements like building a conservatory you've always dreamed of. A FIRSTPLUS loan can also help you manage your existing credit, such as car loans, store cards or credit cards, by consolidating them into one simple monthly payment.

If you're a homeowner, you could borrow from £5,000 to £100,000 with repayments spread over 5 to 25 years. So whatever your situation we can tailor a loan to suit your needs. Typical 7.7% APR variable.

FIRSTPLUS secured loans are not available for investment or business purposes.

What's so special about a FIRSTPLUS loan?
Plenty. Traditional loans only allow you to borrow up to 90% of the value of your home, less your first mortgage – this is your equity. But FIRSTPLUS is different. We could lend you up to 25% more than the value of your home, less your first mortgage. So you can borrow more, and borrow more affordably. In fact, because we offer low interest rates from 7.4% to 10.7% APR variable, typical 7.7% APR variable, and you can choose a longer repayment period, your monthly credit repayments could substantially fall.

• You choose how much to borrow and how long for
• There are no fees for application, set up, valuation, legal costs or topping up your loan later
• It's fast and easy to apply
• Be assured you're dealing with a responsible lender
• A loan for homeowners only

By repaying your borrowing over a longer term, your overall interest charges will increase. Should you repay your FIRSTPLUS loan early, some early settlement interest will apply.

Can I trust FIRSTPLUS?
FIRSTPLUS prides itself on its high standards of service. We strive for excellence throughout the company and don’t rely on our own opinions. Here are some of the accreditations we’ve earned:

• Investors in Excellence – 2004, FIRSTPLUS is the first company in Wales to achieve this award.
• Wales Quality Award, Overall Winners – 2001 and 2002
• Wales Quality Award, People Development Prize – 2002
• Wales Quality Award, Small/Medium Enterprise – 2001
• Accessed by the CBI as World Class in 2001, and have retained this accolade since. FIRSTPLUS achieved the highest score by a financial services company, ever!
• Wales Quality Award, Leadership Company – 2000
• Investors in People – 1999 to date
• Environmental Standard ISO 14001 – 2000 to date
• Health and Safety Standard OHSAS 18001 – 2003 to date
• FIRSTPLUS are ranked 22nd in the Sunday Times Best Companies To Work For 2005

How much less could I pay each month with a FIRSTPLUS loan?
Many FIRSTPLUS customers significantly reduce their monthly credit repayments with a FIRSTPLUS loan. To find out how much you could save each month, use our easy Budget Planner, which will do the calculation for you in seconds. Typical 7.7% APR variable.

Please remember that by borrowing over a longer period, your overall interest charges will increase.

Can you give me an example of what my repayments might be?
Simply click on to our Budget Planner and enter your monthly income and expenses. It will work out your probable repayments for you.

Will I have to pay any application fees?
We don't charge application, set up or valuation fees, or ask you to pay legal costs. And if you decide you need to borrow more later, there'll be no application or set-up charges then, either.

If you request to make a change to your loan agreement, for example, like adjusting the term, or move mortgage lender, then fees do apply. You will find details of our service charges within your application pack brochure. Typical 7.7% APR variable.

What happens if I want to repay the whole loan early?
For loans taken out prior to the 31st May 2005, then the amount you pay is calculated using a formula set out in the Consumer Credit ( Rebate on Early Settlement) Regulations 1983. This will be added to an administration fee and your loan balance to create your early settlement figure. However if you settle after 10 years you will just pay the outstanding balance plus a service charge. For agreements after this date we will apply the formula set out in the Consumer Credit ( Early Settlement) Regulations 2004.

Remember - FIRSTPLUS loans are intended to help you improve your finances over the longer term. We do not recommend a FIRSTPLUS loan for short-term or ‘bridging’ finance.

By repaying your borrowing over a longer term your overall interest charges will increase.

If you have chosen to cover your loan with the optional Payment Protection Plan, and you settle your loan before the end of the insured term, you will receive a small amount of your premium back. No refund will be payable if you have made a successful claim under the terms of the policy.

Can I transfer my loan if I move house?
Yes. If you move home you can nearly always take your FIRSTPLUS loan with you and transfer the security to your new home. Simply contact our Customer Care team on 0845 650 6600* 28 days before your planned moving date, and we'll make all the arrangements.

However, as a responsible lender, we’ll review the overall situation first to ensure your loan continues to fit our criteria and that you are comfortable with your new monthly commitments.

If you are moving to a lower value property you may need to settle some or all of your loan early, using the funds from the sale of your current property.

Existing customers can notify us about an impending move by calling our Customer Care team direct on 0845 650 6600*. A new on-line service will also be available soon.

Remember, any change to your FIRSTPLUS loan agreement needs our approval, and normal approval terms and conditions apply.

Can I borrow more later?
Existing FIRSTPLUS customers can call us on 0800 052 6020* or email topuploans@firstplus.co.uk Our helpful team will be pleased to discuss your personal circumstances.

Can I extend the loan term?
In most cases this is possible, you could reduce your monthly repayments and increase your loan term to a maximum of 25 years.

This could result in a significant increase in your disposable income each month. Existing customers can contact the Customer Care Team on 0845 650 6600* or email customercare@firstplus.co.uk

Please remember that by borrowing over a longer period, your overall interest charges will increase.

Can I increase my monthly repayment amount?
In most cases this is possible, you can increase your monthly repayments and reduce the term of your loan to a minimum of 120 months. Existing customers can contact the Customer Care Team on 0845 650 6600 or email customercare@firstplus.co.uk

What if I lose my job or can't work for some reason?
Sometimes the worst happens - people fall ill, have accidents, or are suddenly made redundant when they're least expecting it. And if anything like that happens to you, the last thing you'll want to worry about is meeting your loan repayments. That's why we suggest all our FIRSTPLUS customers take out our Payment Protection Plan.

The five year Plan takes care of your payments if you become unable to work because of an unexpected illness, accident or compulsory redundancy. If you choose to protect your repayments in this way, we will loan you the insurance premium on the same terms as your loan. This will give you cover for the next five years, after which you can take out a new policy.

Your money back if you don’t need to claim†
If after 5 years you have not made a successful claim you can claim a full refund of your premium.

† Subject to policy exclusions and minus Insurance Premium Tax and interest charges.

What should I do if I'm having difficulty making repayments?
If you are having difficulty it is always best to talk to us as soon as possible. Together we could probably work out a way to re-schedule payments - perhaps extending the term of the loan in order to reduce the monthly payments.

What is right will depend on your own circumstances - but please discuss it with us because we are usually able to help.

Existing FIRSTPLUS customers should contact the Customer Care Team on 0845 650 6600* or email customercare@firstplus.co.uk.

If I'm unhappy with the service FIRSTPLUS has provided how do I make a complaint?
We are proud of the way we look after our customers and each month we contact a significant number of new customers to make sure they are happy with all aspects of our service. However, even in the best organisations things can go wrong and if you’re unhappy for any reason we want to know. Please contact the Customer Care team on 0845 650 6600* or via e-mail at customercare@firstplus.co.uk.

Alternatively, write to the Customer Care Manager, FIRSTPLUS Financial Group Plc, The Avenue Business Park, Pentwyn, Cardiff CF23 8FF.

We will respond to your comments within 5 working days and endeavour to do all we can to address your concerns.

FIRSTPLUS is a member of the Finance & Leasing Association and complies with the FLA Code of Practice, which incorporates the FLA Conciliation & Independent Arbitration Scheme. Copies of the Code are available on request. To find out more about the FLA Code of Practice visit www.fla.org.uk.

If your complaint relates to the Payment Protection Plan, and we are unable to resolve it to your satisfaction, you may complain to the Financial Ombudsman service. Their website address is www.FinancialOmbudsman.org.uk.

Why have I been refused a loan?
At FIRSTPLUS we do not want to lend to anyone who cannot comfortably afford the repayments so we have rigorous qualification criteria. If we decline your application your Customer Account Manager will be able to give you information on why we are unable to help you at that time.

A FIRSTPLUS secured personal loan is only available to UK homeowners with a mortgage who meet our strict application criteria.

How long will it take to process my FIRSTPLUS loan?
A secured loan does take a little while to process but in most cases we are able pay you your money within 2 weeks of receiving all the necessary documentation.

How do I apply for a loan and do I need to provide any documents?
You can apply online or by calling us free on 0800 052 0202*. Your dedicated Customer Account Manager will talk you through the options available to you and make sure we offer the very best solution for you. Your application can be completed over the phone and we’ll normally tell you immediately if it’s approved in principle. We’ll then send your Loan Agreement out to you straight away.

You will need to provide some documentation, such as proof of income and evidence of mortgage payments but we’ll send you a simple check list so you know exactly what to send.

Will our mortgage lender want to know about our FIRSTPLUS loan?
Yes, we will need to get permission from your mortgage lender. However, with your authority, we can normally get this on your behalf so that everything is kept as simple and straightforward as possible.

Are there fees for taking out the loan as well as the interest?
No. We do not charge any fees for application, set up, valuation or legal costs. You can also top up your loan without paying any fee. There are some specific fees to cover our costs if we have to make amendments to your loan – for example if you cancel the loan after your loan cheques have been sent or if you amend your loan in some way. If you would like more details please contact us on 0800 052 0202*.