Funding Options

Being involved in a property dispute or divorce, particularly if court proceedings are started can be expensive. We often hear from clients who are worried about how to pay the costs involved who may have had to adapt to maintaining a household on your own after separating; may be unable to release funds from assets held in joint names or may have only a small income but assets that they are likely to receive but cannot be accessed immediately. There are some alternatives for you to consider so that you can receive the support of one of our expert family specialists in this process. 
Private borrowing
 
The first port of call may be family or friends. Borrowing from family or friends has the advantages of being more flexible in terms of repayment, carries lower interest or none at all; it can be quicker to access funds and has no impact on your credit rating. However, before embarking on this route, it is recommended that if funds are to be loaned rather than gifted and treated as a debt that has to be repaid the repayment arrangements are recorded in writing and preferably a loan agreement.
Commercial Borrowing
 
It may be possible to borrow from a commercial lender including banks and credit card companies. There may be the option of increasing mortgage facilities or using equity in a property to secure funding. Care will need to be taken as interest will be payable and your credit rating and mortgage borrowing capacity may be affected. Any default in payment is likely to result in formal proceedings for recovery of the amount borrowed by the lender.
 
Litigation Funding Loans
 
There are a number of providers that offer loans specifically to fund the costs of litigation. The terms will vary between different providers. These providers offer loans that help spread the cost of legal fees, giving time for a settlement to be agreed. There is no minimum or maximum loan amount – you can simply agree a maximum amount to borrow based on your circumstances and then take the money as and when you need it.
 
Andrew & Co work with two trusted providers who can assist you with flexible payment options. 
 
(a) Iceberg (unsecured loan)
 
• The loan is approved based on you having qualifying assets which include property, land, publically quoted shares, savings, shares in private companies, pensions or vehicles held in the UK.
• Covers all the costs of your proceedings from start to the final hearing for up to 36 months, including legal fees, disbursements and VAT.
• You accrue interest at 1.5% per month on the money that is actually drawn down, not the maximum agreed amount.
• No application or joining fee.
• Pay the loan off in full at any point during the agreement without paying a penalty and reduce the amount on interest you pay.
• You will need to make monthly minimum payments.
• The loan will need to be settled immediately once full settlement has been agreed (or a Court Order has been made).
• Draw down fees apply.
 
To apply you simply need to ask us to let you have  thehave the pre-contract credit information and the credit agreement for signature. You must read this information carefully as, once signed, you will be bound by the agreement.
 
For more information please ask us or contact:
Iceberg Client Credit
T: 01202 835035
www.clientcredit.co.uk
E: reactivate@clientcredit.co.uk
 
(b) Novitas  (secured loan)
 
• Once approved the loan is secured against your property or your interest in a jointly owned property, shares or land held in the UK
• Covers all the costs of your divorce proceedings from start to the final hearing for up to 36 months, including your legal fees, disbursements and VAT.
• You accrue interest at 1.5% per month on the money that is actually drawn down, not the maximum agreed amount.
• Interest rolls-up (i.e. is added to the final amount to repay) so no monthly payments required.
• Pay the loan off in full at any point during the agreement without paying a penalty and reduce the amount on interest you pay.
• No minimum loan period.
• The loan will need to be settled immediately once full settlement has been agreed (or a Court Order has been made).
• A £500 set-up fee (or 1% of the facility if higher) is added to the loan.
 
As it will be a secured loan, independent legal advice will need to be sought prior to the uptake of the loan. The cost of that advice is typically £250 and cannot be added to the loan.
 
For more information please ask us or contact:
Novitas Loans Limited
T: 01722 417065
www.novitasloans.co.uk
E: enquiries@novitasloans.co.uk
 
If you take up either of these options you will have complete control over the loan at all times; you must approve any payments made to Andrew & Co on your behalf by the loan provider and will only pay interest on the money you use. This gives you peace of mind that full funding is available, while ensuring you only pay for what you use, keeping your loan cost-effective. However, security can be required and interest rates can be high
 
Other funding providers are available.
 
Public Funding
 
Public funding (often known as Legal aid) is available only in very limited circumstances. Andrew & Co do not offer advice under the Public Funding Scheme. If you think that you may be eligible we will signpost you to another firm who offer advice under this Scheme.
 
Insurance 
 
Some insurance policies; general household contents or a specific legal expenses policy, provide assistance with the payment of legal costs although it is unusual for such policies to cover legal costs associated with divorce and the breakdown of a relationship. Please check any policies you hold to see if you are covered.