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Unsecured Personal Loan

  • Money in your bank account within 1-5 days
  • Loan amounts from £1,000 to £25,000
  • Requires monthly payments
  • Cost of finance will depend on your credit score
  • Available at any time during your probate journey
  • Does not impact your future inheritance
The key advantages of an unsecured personal loan is that you can decide on the amount (maximum of £25,000) and term (12 to 60 months) you desire and the funds will be in your bank account within 1-5 days. You can also apply for an unsecured personal loan at any point in your probate journey. This might be useful if you need to pay for a funeral or for solicitors' fees before you receive a Grant of Representation.
 
However, you will also need to make monthly repayments and if you were to miss any repayments, it will affect your credit score negatively. It may also be harder to get a loan if your credit score is poor, and the interest rates available will be higher. With an unsecured personal loan, you are not borrowing the money against the value of your future inheritance. So if it turns out that you can’t meet your monthly repayments, the lender won't be able to reduce your inheritance.
 
Unsecured loans are largely the same and so are easier to compare based on price, however, if you are planning to refinance your unsecured loan with an inheritance loan later in your probate journey it is worth paying attention to whether the provider will charge you a fee to settle earlier than the term you requested (we will indicate lenders that charge an early settlement fee).

Loans

Ponte will guide you through the probate process whilst helping you take care of your finances along the way. Ponte allows you to compare a range of financial products to bridge any costs that arise prior to receiving your inheritance. Ponte is a broker and not a lender.

Inheritance Loan

  •  Money in your bank account in around 10 days
  • Loan amounts from £10,000 to £300,000
  • Does not require monthly payments
  • Repaid entirely from your inheritance
  • Secured against the value of your future inheritance 

The key advantage of an inheritance loan is that you will not need to make any monthly repayments. In some cases, the lender will not require any sort of credit check for this type of loan as your current financial situation is not relevant to their lending decision. This might be useful if you need to borrow a larger amount that you are unable to afford prior to receiving your inheritance, for instance, to pay inheritance tax

 

However, inheritance loans typically take longer to arrange (5-10 working days) and may require a Grant of Representation or the submission of an IHT400 before you can receive the loan. With a inheritance loan, you are borrowing the money against the value of your future inheritance, normally by either an assignment of your rights under the will to the lender or through some sort of legal charge (like a mortgage). You won’t need to choose a term as the loan is repaid by the estate executor as funds become available, so what you ultimately receive will be reduced by the amount of the loan and interest due.

 

Inheritance loan products also tend to be quite different making them more challenging to compare. Things to look out for are:

  • Initial fees: Some providers charge an initial fee, if you have a complex case that will take a long time to distribute then this might be worth paying if the interest rate is lower but if you have a simple case that will be wrapped up quickly it may make the product more expensive

  • Pre/Post-Grant: Some providers will lend before you receive a Grant of Representation but some will not. If you are looking to pay inheritance tax to receive the Grant of Representation then you need to ensure that the product is available pre-Grant

  • Intestacy: Not all inheritance loans are available in intestacy cases

  • Estate or beneficiary loan: Does the loan need to be made to the estate rather than to you as a beneficiary? If so, you will need to get the consent of the executor and potentially other beneficiaries. If you are the sole beneficiary and the executor then this is less of an issue

  • Regulated or unregulated: Some providers are not regulated by the FCA and can only provide loans to certified high net worth individuals

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Ponte is a trading style of Ponte Finance Limited, a company registered in England & Wales (Company Number: 12238417 | VAT Registration Number: GB344539782). Registered Office: IDEALondon, 69 Wilson Street, London, EC2A 2BB. Registered with the Information Commissioner’s Office in compliance with the Data Protection Act 2018 under registration A8690405. Ponte Finance Limited is authorised and regulated by the Financial Conduct Authority (FRN: 925838).

Copyright © 2020 Ponte Finance Limited. All rights reserved. Reproduction in whole or in part without permission is prohibited. Calls and interactions may be recorded for training and monitoring purposes. Ponte acts as a credit broker and not a lender.

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