A Step One mortgage loan is also known as a secured loan or a second mortgage loan. Our mortgage loans are available to qualifying homeowners and owners of Buy-to-Let properties in England, Scotland and Wales. Choose from flexible loan amounts available up to £150,000 (loans over £150,000 may be considered on a case by case basis). A mortgage loan is a way to use available equity in your house to obtain the capital you need for your current financial priorities and goals in life.
Step One lends for most purposes and has products to suit most customers. A mortgage loan can potentially offer a lower rate of interest when compared to unsecured personal loan products, but we recommend that potential borrowers consider all of their financing options to obtain the best solution for their needs. This will ensure that your decision is made properly and with research behind it, giving you the best situation for the receiving of your money and in making subsequent repayments.
- Home improvements
- A deposit or purchase of a new property
- Wedding or other significant life events
- Debt consolidation
- Dream holiday
- Purchases for children
- Education and training expenses
- Unexpected car maintenance costs
- Repairing damage to property or other assets
- Medical expenses
- Moving costs
- Lifestyle changes
- Car, boat or other large purchase
- Equity release for the purchase of another property
- Unexpected tax bill
- Business expansion
- Borrow up to 85% loan to value (LTV). The total LTV includes the amount of your current first mortgage
- Competitive loan rates
- Loan amounts available from £10,000 up to £150,000 (loans over £150,000 may be considered on a case by case basis)
- Repayment periods available from 6 years to 30 years
- 5-year fixed rates available across our product range
- No up-front application fees. Our lender fee is only charged if you take out a loan with us. Depending on the requested LTV we may need to undertake a property valuation and will advise you of these costs before any work is undertaken
- No hidden fees. We will always tell you about all of our fees in a clear and transparent manner.
Our lending criteria
- Minimum loan size £10,000
- Maximum loan size £150,000 for residential and £100,000 for buy-to-let
- Minimum age 21 years
- No maximum age
- Minimum income £16,000 for sole applicants and £20,000 for joint applications
- Minimum 6 months at current address
- Loans available in England, Wales and Scotland
- Up to 85% LTV Residential and 80% LTV on Buy to Let
Your mortgage loan will be reviewed based on a series of factors that will determine the response to your application. While this calculation is quite complex, the following points will be considered. Knowing these may help you to plan and prepare for your application in advance and will also help you if a mortgage loan is something you wish to consider in the future instead of the present.
Affordability: As a responsible lender, Step One will want to ensure you have the means to make your monthly repayments for your chosen loan term. We will carry out a full review of your income and outgoings to determine that the mortgage loan is affordable for you both now and in the foreseeable future.
Employment history: Taking a mortgage loan is a serious financial obligation. This means that as lenders we review your employment history to provide a sense of your ability to repay your loan consistently. Where employment is concerned, this means that we will review your history to see if there are large gaps in your previous employment.
The length of your time employed with individual companies will also be factored into your application. As a rule, longer stays in one position are ideal as opposed to regular movement between jobs that may indicate unreliability in making repayments on your mortgage loan.
Credit history: Your credit history is one of the most important factors in your application and will be reviewed closely. When reviewing your application for a Step One mortgage loan, your credit history will be analysed to discern trends of repayments and debt.
As a loan of this kind is a significant obligation, your credit history is important in demonstrating your previous consistency in making repayments and managing debt.
Equity:A primary consideration in your mortgage loan application is equity. This is the difference between the amount still owed in the mortgage and your homes fair market value. Equity is determined by subtracting the balance remaining on your primary mortgage from the current market value of your home. A percentage of this amount would be the equity used to secure the amount you wish to borrow on your mortgage loan.
While your application will be approved or declined based on a combination of factors, a greater amount of equity will typically result in the best possible rates for your personal circumstances.