Planning a SIP build often means balancing the cost of the shell, delivery, installation and the rest of the project. To give eligible customers another way to consider funding a complete kit, UltraSIPs now offers a finance enquiry option through Boost Finance on selected orders.
This is not a promise of finance and selecting it does not mean that an order has been paid. It starts a preliminary enquiry so Boost Finance can discuss the application, assess the circumstances and explain any suitable options.
Boost Finance Limited is an Appointed Representative of EFT Finance Limited which is authorised and regulated by the Financial Conduct Authority (FRN 667290).
What type of finance may be offered?
Boost Finance has advised us that applications are likely to follow one of two routes:
- Personal applications: most are expected to be considered through a second-charge loan secured against the applicant's residential property.
- Business or limited-company applications: these are more likely to be considered through a hire-purchase agreement, subject to the asset, business and lender criteria.
The route is not chosen or approved by UltraSIPs. Boost Finance and the eventual lender will decide what, if anything, is available after completing their checks. Finance is subject to status, affordability, lender approval and the terms offered.
Who can submit an UltraSIPs finance enquiry?
The online preliminary route is currently intended for applicants who:
- are homeowners;
- are aged 18 or over and resident in the United Kingdom;
- have not had a CCJ, default, IVA or bankruptcy during the last six years; and
- are applying for an eligible UltraSIPs kit or project purchase.
If an applicant confirms that they have had a CCJ, default, IVA or bankruptcy in the last six years, the online finance application cannot continue. No application is sent to Boost Finance from that checkout route.
Finance is displayed on eligible kit and project purchases. It is not currently offered through this checkout option for drawing-only services or standalone SIP panel purchases.
Personal route: what is a second-charge loan?
A second-charge loan is borrowing secured against a residential property that already has a mortgage. The existing mortgage provider keeps the first legal charge over the property. The new lender registers a second legal charge.
If the property is sold or repossessed, the first-charge mortgage is repaid before the second-charge lender. A second-charge loan can allow a homeowner to raise funds against available equity without replacing the existing mortgage.
Equity is broadly the difference between the property's current value and the borrowing already secured against it. The amount that may be available will depend on matters including:
- the lender's valuation of the property;
- the balance outstanding on the existing mortgage and any other secured borrowing;
- the applicant's income, committed expenditure and affordability;
- credit history and the lender's eligibility rules;
- the requested term and repayment structure; and
- the lender's maximum loan-to-value limit.
Why might somebody consider this route?
A homeowner may want to retain their existing mortgage, particularly if it has a favourable rate or an early-repayment charge, while raising funds separately for a substantial project. However, keeping the first mortgage does not make the additional borrowing risk-free. The borrower will have two debts secured against the property and must be able to maintain both sets of payments.
Important risks and costs
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Second-charge borrowing is a significant financial commitment. Interest rates can be higher than on a first mortgage, and extending repayments over a long term can increase the total amount repaid. Applicants should understand the interest rate, APRC, total repayable amount, fees, term, early-repayment charges and what happens if payments are missed.
The lender or broker should also explain relevant alternatives. These could include a further advance from the existing mortgage lender, remortgaging or unsecured borrowing. The right comparison depends on individual circumstances, existing mortgage terms, fees and the amount required.
MoneyHelper recommends comparing the full cost and terms and obtaining advice from a suitably qualified adviser. The Financial Conduct Authority also stresses that eligibility and affordability are not the same as suitability: a product should be appropriate for the customer's needs and circumstances.
Business route: how hire purchase works
For business applicants, Boost Finance has advised that hire purchase is the more likely initial route. Hire purchase is a form of asset finance that can allow a business to use an asset while paying for it over an agreed period.
A typical agreement works as follows:
- The business pays any deposit required by the lender.
- The finance provider purchases and legally owns the financed asset.
- The business uses the asset and makes the agreed monthly repayments.
- Once all repayments and any option-to-purchase fee have been paid, ownership transfers in accordance with the agreement.
Until the agreement has been completed, the finance provider normally retains legal ownership. The business is usually responsible for looking after the asset and may not be able to sell or alter the lender's interest in it without permission. If repayments are not maintained, the lender may have the right to recover the asset.
Whether a particular SIP kit purchase can be funded through hire purchase, how it is treated as an asset and what deposit or security is required will be decided by Boost Finance and its lending panel. The online UltraSIPs enquiry does not determine this.
What a business should review
- the deposit, repayment amount, interest and total amount payable;
- the agreement term and any final option-to-purchase fee;
- ownership, insurance, maintenance and permitted-use conditions;
- early-settlement terms and charges;
- what happens if the project changes or the asset is no longer required; and
- the accounting, VAT and tax treatment with the business's accountant.
HMRC distinguishes between the hire and capital elements of hire-purchase payments, and the treatment can depend on the agreement and accounting basis. UltraSIPs cannot provide tax advice, so businesses should confirm the position with their accountant before signing.
Second charge and hire purchase compared
| Point | Second-charge loan | Business hire purchase |
|---|---|---|
| Typical applicant | Personal homeowner | Business or limited company |
| Security | A legal charge against the applicant's residential property | The financed asset is normally owned by the finance provider during the term |
| Existing mortgage | Usually remains in place as the first charge | Not the basis of the hire-purchase structure |
| Ownership | The loan raises funds; it does not give the lender ownership of the SIP kit | Ownership of the financed asset normally transfers after all required payments and fees |
| Main risk | The applicant's home is at risk if secured repayments are not maintained | The lender may recover the asset if the agreement is not maintained |
How the UltraSIPs finance enquiry works
- Configure or choose an eligible kit. Build the project in the UltraSIPs configurator or add an eligible product to the basket.
- Select Boost Finance at checkout. The normal online-payment option remains available.
- Complete the preliminary questions. These cover homeownership, credit history, adverse credit, equity, employment, household income, the amount required, purchase type and UK residency/age.
- Pass the initial eligibility rules. Non-homeowners, applicants under 18 or outside the UK, and applicants reporting a CCJ, default, IVA or bankruptcy in the last six years cannot continue through this route.
- Submit the enquiry. The order is recorded as pending a finance decision. It is not treated as paid and does not enter manufacture.
- Boost Finance contacts the applicant. The aim is for a member of its team to make contact within 24 hours, although a full lender decision may take longer.
- Review the proposed terms. If a route is available, Boost Finance or the lender will explain the product, affordability assessment, costs, documents and next steps.
- Project preparation follows approval. Drawings, required sign-off, the finance/payment arrangements and the agreed order scope must be complete before manufacture can begin.
Submitting the preliminary form does not guarantee approval, reserve a lender product or commit the customer to an agreement. UltraSIPs does not make the credit decision.
Questions to ask before agreeing to finance
- What is the interest rate, APRC or equivalent total cost measure?
- What is the total amount repayable over the full term?
- Are there broker, valuation, legal, arrangement or administration fees?
- Is the rate fixed or variable?
- What deposit or equity is required?
- What are the early-settlement terms?
- What happens if repayments are late or missed?
- For secured borrowing, exactly what charge will be registered against the property?
- For hire purchase, when does ownership transfer and what restrictions apply before then?
- Are there alternative ways to fund the project that may cost less overall?
Frequently asked questions
Does the UltraSIPs preliminary form perform a full credit check?
No. It is an initial eligibility and information form, not a lender decision. Boost Finance or the eventual lender will explain any credit searches, required consent and supporting documents before carrying them out.
Can I apply if I have had a CCJ, default, IVA or bankruptcy?
Not through the current UltraSIPs online route if any occurred within the last six years. Selecting “Yes” stops the application before it is submitted.
Can I apply if I am not a homeowner?
No. The current preliminary route requires the applicant to be a homeowner.
Does an application start production?
No. A finance order remains pending. Manufacture cannot begin until the finance or payment arrangements, drawings, customer sign-off and final project requirements are complete.
How quickly will I receive a decision?
Boost Finance aims to contact new applicants within 24 hours. Contact is not the same as approval, and the time needed for a full decision depends on the lender, valuation, documents and complexity of the application.
Will the repayment amount shown by UltraSIPs be final?
UltraSIPs does not calculate or advertise a monthly repayment. Any illustration or offer must come from Boost Finance or the lender and will depend on the product, amount, term, rate, fees and applicant circumstances.
Independent information
Before taking secured or business finance, read the proposed agreement carefully and consider independent advice. Useful general guidance is available from:
- MoneyHelper: second mortgages
- Financial Conduct Authority: second-charge mortgage outcomes
- British Business Bank: asset finance and hire purchase
- HMRC: hire-purchase principles
Ready to explore a project? Use the UltraSIPs configurator to create a build, or contact our team if you would like us to review drawings before you proceed.
This article provides general information only and is not personal financial, mortgage, legal, accounting or tax advice. Finance is subject to status, affordability, lender approval and terms.