Frequently Answered Questions Overview
Scroll Finance or Scroll is a FinTech lender setup to offer flexible financing solutions to UK homeowners and landlords by allowing them to easily access their home or property equity to meet essential needs.
Scroll is built on modern technology to deliver a seamless and fully digital customer journey resulting in a fast and convenient process. This is possible due to the technological advancements that have enabled Scroll to make real-time decisions without manual interventions as compared to the traditional lending model. Scroll has been founded by individuals with significant experience in UK mortgages, consumer lending, and FinTech. Click here to find out more about us.
Home equity is the difference between the saleable value and the current mortgage balance of the property. Most homeowners and landlords hold significant equity in their homes or buy-to-let properties.
What is a second charge mortgage?
It is a loan secured on your property in addition to the primary mortgage you already have. A second charge mortgage enables you to unlock the equity you have built up in your property without having to refinance your first mortgage, which normally is a long and cumbersome process, which may force you to pay early repayment charges.
Products What is a Scroll Finance Home Equity Loan (HEL) and Home Equity Line of Credit (HELOC)? Scroll Finance HEL is a loan facility for homeowners and landlords between +£25,000 and £1,000,000 based on the estimated value of home or property equity. The loan is secured through a 2nd lien against the Buy-to-Let residential property. Scroll Finance HELOC is a revolving credit facility secured through a 2nd lien against the equity built up in Buy-to-Let residential property. HELOC enables borrowers to draw-down when they need the funds and repay flexibly. Borrowers pay interest only on the drawn amount and rates are much lower than comparable facilities such credit cards. Visit our products page to find out more. How can I use the proceeds of the loan?
Landlords can use Scroll's HEL and HELOC products to meet any legal essential needs including but not limited to home improvements, property purchase, debt consolidation, paying university fees, and so on
What is Scroll’s eligibility criteria?
For details on the eligibility criteria, please refer to the
Eligibility section of the website. How much can I borrow as a percentage of my property’s value?
The maximum Loan-to-value (LTV) ratio that Scroll can fund is up to 80%.
What are the applicable fees and charges?
An indicative quote from Scroll will include the APRC (annual percentage rate of charge) which can be used as a comparison with similar loan products. The representative APRC for a Scroll HEL is 5.8%*. This APRC, besides the interest rate, includes additional costs such as the product fee and broker fee.
The product fee charged by Scroll is a flat 2% for HEL and an additional 0.5% for an add-on HELOC. Scroll’s HEL product is fully flexible, and we do allow early repayments with a market leading flat fee of 2% of the pre-payment amount. Broker fees are negotiated directly between the borrower and their broker. The borrower may choose to pay any broker fees upfront or add these to the loan or do a mixture of both. Please see our full list of tariffs and charges. How do you decide my interest rate?
Scroll offers competitive pricing to each borrower based on individual risk factors such as:
a. Loan-to-Value (LTV) b. Type of borrower c. Borrower credit profile d. Property value e. Size of loan f. Purpose of loan g. Type of property How do you conduct a valuation of the property?
The property is appraised via our partner Rightmove with an Automated Valuation Model (AVM). This model takes into account metrics such as recent sales of similar properties, public data records, and historical price trends in the housing market to reach an assessment of your property’s worth. Alternatively, we may instruct the broker to conduct a drive-by or physical valuation if required.
Can Scroll HEL be settled early?
Yes, there is full repayment flexibility. Scroll offers market-leading flat 2% early repayment charges of the amount being repaid.
Are Scroll Finance products (HEL and HELOC) regulated by the FCA?
Both HEL and HELOC are unregulated products. Currently Scroll Finance Limited does not offer or provide any products which are regulated by the Financial Conduct Authority.
Process a. Fully digital application: Provide a few simple details about you, your property and your loan on Scroll’s easy to use, smart platform. b. Automated validation checks: Scroll is proud to partner with the likes of Experian and Rightmove to provide real-time, automated credit and valuation checks – we do the work, so you don’t have to! c. Flexible and bespoke terms and rates: Specify your own fixed rate period or choose from one of our flexible options. d. eSign and get cash fast: Electronically sign paperwork and grab a coffee — funds will be transferred directly to your account. Can I apply for multiple loans?
Yes, it is possible to apply for multiple loans to the extent that the borrower has multiple security properties.
Will an enquiry or indicative quote affect my credit score?
No, an initial enquiry or quote will not affect your credit score. We will only run a soft credit check which will not leave a footprint on your credit file. Only after you have accepted the conditional offer, will the hard credit check leave a footprint.
How long do I have to pay back the second charge mortgage?
Scroll’s loan term is flexible - you may take out a loan over any period from 3 to 25 years.
Impact What advantages does HEL have over re-mortgaging?
If you have a competitive rate on your first mortgage and a long maturity date, you would not want to refinance it earlier than required. HEL enables you to keep your first mortgage as it is, at attractive terms. You would not be liable for any repayment charges on your first mortgage.
Re-mortgaging a property requires a full process again just like the one undertaken for the first mortgage. This means revaluation of the property and rental incomes alongside borrowers’ personal income. However, Scroll can disburse funds within 5 working days (in most cases) through an easy and convenient process. If you choose to go for HELOC, Scroll provides further flexibility to draw down funds only when you need them. And you will only pay interest for what you use, when you use it. How will a second charge impact my current mortgage arrangement?
There will be no impact on the current first mortgage arrangement as the second charge loan will be an independent facility. However, we’ll require consent from your first mortgage lender.
* Representative example for an interest only mortgage of £100,000 payable over 25 years initially on a fixed rate for 2 years at 4.75%; then on variable rate of 5.35% above the Bank of England Base Rate for the remaining 23 years. This example would require 24 monthly payments of £412 and 276 monthly payments of £473, plus one final payment of £104,040. The total amount payable would be £215,831 made up of the gross loan amount of £104,040, which includes a capitalised broker fee of £2,000 and a capitalised product fee of £2,040, plus interest (£111,791).This is an illustration of a typical loan and its total cost. Please note your actual costs and monthly repayments will vary.