Estate Advance

Traditionally, personal loans require the borrower to sign a personal guarantee or to provide security to the lender over their assets, such as property. In the event that the borrower defaults, the lender can then take possession of personal assets and sell them to recover what they are owed. Estate Advance is different. The product was designed to underwrite Estates, not borrowers, so you won’t be asked for any form of personal security. Our claim is against the assets of the Estate and in the event those assets sell for less than they are owed, that’s their loss. There are no monthly payments and no early repayment fees.

The Advance can be used to pay Inheritance Tax or other estate liabilities.

That doesn’t matter, because underwriting is focused on the Estate (and its assets/liabilities) rather than your personal credit rating. The application process therefore ensures that there’s a clear link between applicants (i.e. Executors) and the Estate, as well as establishing the estimated value of eligible assets within the Estate, to advance funds against.

No. The decision will be based on the assessment of the Estate. Therefore, your employment information is not relevant.

That's Ok and is not your risk, it’s ours. This is why we ensure we fully understand the Estate as part of our underwriting process. If we get the assessment wrong we bear any associated loss.

We will estimate the value of the Estate’s eligible assets less any liabilities owed, such as the Administrator’s fees, mortgages over property within the Estate, etc. This gives the Estate’s estimated net eligible asset value.

Eligible assets are typically (UK domiciled) cash, as well as publicly quoted investments and properties that are to be sold. We may consider other assets by exception. You will then be offered up to 60% of your portion of the Estate’s net eligible assets. You may, of course, take less.

The Arrangement Fee (which is simply added to the loan) is 2% of the loan amount. The interest rate is 2% per month for as long as the Advance is outstanding.

Unlike other providers we only charge simple interest, not compound interest. That means you are not paying interest on the interest. Combined with the fee structure detailed above it makes our Estate Advance the best value available.

That’s absolutely fine. Our underwriting is based solely on your share of the Estate and your Advance has no impact on the other beneficiaries. It is also fine for more than one beneficiary of an estate to apply for an Advance.

No – as the Executor/Personal Representative you are entitled to take out an Estate Advance.

That’s OK. The Inheritance Tax will still need to be paid regardless of whether or not there is a valid Will. Thus, you can still apply for an Estate Advance.

We require a professional firm to be responsible for the distribution of the asset(s) that will enable the Advance to be repaid. This would typically be the Estate Administrator or Conveyancing Solicitor

The loan is repaid when the assets from the estate are realised. There are no early repayment fees.

You will have 14 days to cancel your Advance from the date you enter into the loan agreement. Should you elect to do so, within 30 days after cancelling, you will need to repay the amount of the Advance together with accrued interest, at the interest rate set out in your loan agreement, from the date the Advance was provided until the date of repayment.

Provira’s founding team and investors are experienced financial professionals, having successfully launched and invested in many innovative specialty finance businesses. We are passionate about building disruptive businesses that focus on benefiting the consumer. We’ve worked for and with some of the largest and most reputable financial institutions globally.