Brexit and The Great Unknown(s)

As I write this the Prime Minister and Parliament are feverishly trying to hash out a deal for us to leave the EU, which happens on the night of March 29th.

Without a deal to leave the EU, there is fear of chaos, confusion, cats and dogs living together, gravity ending and the UK goes spinning off into the cosmos.

But seriously, having a deal is better than not having a deal.

There are concerns over food prices going up, holidays requiring a Visa to enter the EU, and just about every other aspect of life that we were sharing with the EU.

Companies are and have already moved billions of Pounds outside of the UK in preparation for the leave.

Many are concerned if the UK can go it on its own without the EU.

Somehow, we will be fine.

It is the fear of the unknown, we really do not know what is being “dealt” with in this “deal”. There are the obvious headlines, immigration, trade rights, transportation, etc.

What about banking, and also what about insolvency laws?

The regulatory body that overseas all things credit, banking and financial, the FCA/Financial Conduct Authority have concerns; concerns enough to have a “no-deal Brexit financial war room”.

A spokesman for the FCA stated, “As part of our planning for all scenarios we have put in place contingency measures in the event of a hard Brexit.”

“We will have teams in place throughout the weekend of exit to monitor the situation and respond as needed, working closely with the Treasury and the Bank of England.”

The FCA will monitor IT changes during the leave period on the 29th, and also deal with “passporting rights”. This is where EU members have a right to do business here and deal with UK clients, these all need to be updated.

Brexit and UK Insolvency Laws

One area of the Brexit I have not seen or heard any discussion about is our current insolvency laws, and if the Brexit will affect them.

Currently if you reside in the UK and have EU debts, you can include these accounts in an IVA or Bankruptcy or a DRO/Debt Relief Order. The accounts can be discharged after 12 months in a Bankruptcy or DRO, and you no longer owe them.

You can include debts from anywhere in the world in a UK bankruptcy, but the protection afforded you with the bankruptcy is only in the UK, not the country where the debt originated. So if you were to return to that country, the creditor could attempt to collect the account.

There are also collection laws and practices in place with some EU countries, so if someone leaves the UK with debt, and moves to the EU, the creditor can still collect the debt in the EU.

So is all this going to change???

Speculation: It may be that once we leave the EU, and debts one has in the EU would fall into the same category as how a debt from outside the UK and EU had been treated in the past.

You can include an EU debt, or debt in any country, however the protection the courts provide in the UK will be for only in the UK; no longer also in the EU.

To speculate further, this could impact business and banking relationships. Companies based in the EU if they owe money to a UK bank would have to be chased for payment if they default in a different manner. The creditor may need to seek authorisation to collect the debt in that country.

It can get complicated.

There are some that feel there will be no immediate change, the provisions in place to collect debts across borders will remain. However, they will need to be addressed at some point.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.