Step One Finance

Based in Woking, Surrey, Step One Finance is a specialist loan company offering clients secured personal loans and guarantor loans. Perhaps best-known for the secured homeowner loans it provides to borrowers across England, Wales and Scotland, Step One Finance can help with a wide range of homeowner loans (also known as a second charge mortgage) of up to £150,000. By making your application through the Step One Finance website, you can find out how much you can borrow. Step One Finance acts a direct lender (rather than a broker) if your loan application is approved.

In addition to being able to meet the repayments, you will need to meet the following criteria before applying:

• You must be over 21 years of age and reside in England, Scotland or Wale
• You must have lived at your current property for a minimum of six months.
• You must be a homeowner or a buy-to-let owner.
• You must already have a first-charge mortgage on your home.
• You must earn at least £20,000 as a sole applicant or £25,000 as joint applicants.

You can rest assured that AStep One is a reputable lender as part of the Finance and Leasing Association., Step One Finance is also regulated and authorised by the Financial Conduct Authority (FCA).

Loan types

Step One Finance offers unsecured personal loans of up to £10,000. They also provide secured homeowner loans of up to £150,000, which you may also hear referred to as second-charge mortgages. In the same way that a first-charge mortgage is secured against your home, a second-charge mortgage uses your home as security. For this reason, it is essential that you think carefully before considering a second-charge mortgage. If the repayments are not kept up, your home or property may be at risk.

Step One Finance key features

You can choose a loan term between six to thirty years in which to make your repayments. The available term will be determined by your individual needs and circumstances. Step One Finance offers loans of up to 95% of the value of your home, less the outstanding mortgage. For a buy-to-let property owner, loans are limited to amounts of up to £100,000.

Step One Finance will charge a one-off fee when you are accepted for your loan. An extra charge for a property valuation fee may also be incurred, should one be required. It is always advisable that you check that you can afford the loan before you apply, as missing repayments can put your property at risk. For this reason, once again, it is critical that you are aware that your home will be used as security on your loan. You have the option of choosing to have your interest rate fixed for up to five years to help you budget.

Step One Finance loans pros and cons

It is always important to consider the pros and cons of any financial product before applying. Pros include flexible loan terms, enabling you to increase or decrease the amount borrowed, or to vary the repayments. Also, by offering a range of variable and fixed interest rates to suit your needs, this can be tailored to your specific circumstances. There are no hidden fees when you take out a loan with Step One Finance. The cons are, of course, that you will need to use your home as security against the loan, and there is a lender fee incurred when you take your loan out.

What is the process of applying for a Step One Finance loan?

Applying for a Step One Finance loan is easy. By selecting the time frame and amount you wish to borrow using the sliders on the application page, you then complete a simple application form providing all the required details. After a Step One Finance representative has contacted you to discuss your loan options, you may be required to have your home valued at an additional cost. It will then take 3 to 4 weeks for Step One Finance to process your loan.

You may wish to seek alternative options before applying. Car loans are available from most banks and credit unions on new and used cars. Home equity loans may be another viable option, should you wish to renovate your property, go on holiday or purchase a new car. Personal asset secured loans may suit your needs wherein high-value assets such as jewellery, boats or vehicles are accepted as collateral. However, these types of loans are unlikely to be available from most major lenders.

If you fit the above criteria and have a good credit history, a Step One Finance loan could be a suitable option.