Step One Finance was established in 2010 and aim to consider traditional lending in their business. Their team of qualified professionals consider customers’ applications carefully and personally.
They are authorised and regulated by the Financial Conduct Authority and are also members of the Finance & Leasing Association (FLA).
They operate by business principles that are realistic, deliverable and, believable. They have four core business principles:
A Step One mortgage loan is also known as a secured loan or a second mortgage loan. Step One Finance aims to lend for lots of different reasons to give their customers the most opportunity to get a loan.
Their minimum loan size is £10,000 and their maximum loan size is £150,000 for residential and £100,000 for buy-to-let customers. Loans over £150,000 may be considered on a case by case business.
The repayment periods available from Step One Finance are from six to 30 years with variable and five-year fixed rates available across their product range.
There are no upfront application fees. Their lender fee is only charged if the customer takes out a loan with them.
Depending on the requested LTV, Step One Finance may need to undertake a property valuation. They will advise their customers of these costs before any work is undertaken.
A representative example given by Step One Finance is a loan of £45,000.00 payable over 216 months would require 216 monthly payments of £398.84.
This is based on an initial fixed rate for 60 months at 7.90% and then the applicable standard variable rate, currently 7.90% for the remaining 156 months. The total amount payable would be £86,344.44 (This includes the amount borrowed of £45,000 together with a £900 lender fee, plus £40,249.44 interest and a £195 discharge fee).
The mortgage loan application will be reviewed based on a series of factors. They will consider the following factors:
- Employment history
- Credit history
It takes longer to arrange a loan secured against a customer’s home because Step One Finance have to ensure the customer is able to meet all their commitments and they have to consider the suitability of the property as well as the customer’s personal circumstances.
On average, Step One Finance take three to four weeks to complete their second mortgage loans.
Some of Step One’s secured mortgage loans do have early repayment charges and the customer will also be required to give 28 days’ notice if they wish to repay their loan early. This is explained in the “early repayment” section of your mortgage offer.
A Step One Finance second charge mortgage is not portable. It will be repaid from the proceeds of the sale of the customer’s property, but they may be eligible for a new loan on their next property.
Other Financial Services
Step One Finance also offers other loans to their customers.
Step One Finance’s personal loan product is available to qualifying homeowners in England and Wales.
The minimum loan size for this loan is £1,000 and the maximum loan size is £10,000.
Repayment periods for this loan are available from one year to five years. All loans are fixed rates.
There are no upfront fees with the loan and no hidden fees – Step One Finance will always be clear and transparent about their fees.
The customer has the right to repay all or part of the outstanding balance of their Step One Finance personal loan at any time. Their early settlement figure will include any compensation Step One Finance are allowed under section 95A of the Consumer Credit Act 1974.
A Step One guarantor loan requires the customer to have a third party guarantee the repayment of your loan who must be a homeowner in England or Wales.
The minimum loan size for this type of loan is £1,000 with the maximum loan size at £5,000. Repayment periods are available from one year to five years with this loan.
This loan is available to non-homeowners, but the guarantor must be a homeowner. Anyone can be a guarantor, but they need to be a homeowner, have a good credit history and be able to meet the customer’s loan repayments as well as their own commitments.
There are no upfront or hidden fees with this loan.
Step One Bridging loan products offer a short-term lending solution to customers.
Their Non-Regulated Bridging loans offer a number of options for customers who may have good credit but also takes into account customers who may have adverse credit.
They have experienced underwriters who will consider individual enquiries with a fast response.
They are no early repayment charges and the payments are deferred for the first 12 months.
First charge is £50,000 to £500,000. Over £500,000 can be offered on a referral basis.
Second charge is £25,000 to £250,000. Over £250,000 can be offered on a referral basis.
Terms available of up to 36 months.
Step One Finance Reviews and Ratings
Step One Finance has very limited reviews available. They currently have no reviews on Trustpilot and limited reviews across Smart Money People and Google Reviews.
The lack of reviews makes it difficult to know whether the reviews can be taken as a truly representative view of the company.
Step One Finance currently does not have a Facebook or Twitter page, but they can be found on LinkedIn.
Smart Money People – 4.43/5 (Based on seven reviews)
Google Reviews – 3.3/5 (Based on seven reviews)
Some customers have praised the straightforward manner of the company along with the diverse range of products they provide. They have been said to be honest and fair about the products they offer.
Some reviewers have reported frustration with some of Step One Finance’s policies.
- Very informative site
- Good range of loans offered
- No upfront fees
- Lack of customer reviews
- Relatively high interest rates
- Not as experienced as other companies
If you’re looking to compare offers on secured homeowner loans, then let HouseholdQuotes help you find the best loan available for you!
For more information on home improvement loans, read our guide.