Funding your proceedings with Rhea
Rhea are here for you; providing a loan to meet your legal and related costs so that you can access the legal representation that you deserve.
We understand that going through family litigation proceedings can be stressful and so we have developed our loan funding facility to be as simple as possible and with you in mind. Obtaining a loan is straightforward and your solicitor will work with us to make an application on your behalf.
There are no monthly repayments and your loan is settled upon conclusion of your proceedings.
Providing the best value, service and transparency are key pillars of our product.
Our loan process
1. Application
We will work directly with your solicitor who will submit the loan application on your behalf. We will provide a decision-in principle within 24 hours.
2. Documents
Upon approval, we will send you your loan documents for electronic signing. You will need to obtain independent legal advice; Rhea will be pleased to provide a panel of trusted firms our borrowers have previously worked with.
3. Facility
Once all documents have been signed and returned, your facility will be made available. Your solicitor will then be able to request draw downs on your behalf, which you will be invited to electronically approve.
4. Repayment
Repayment will be made at the conclusion of your proceedings. There are no monthly repayments and you can view your outstanding balance at any time via our online portal.
How our product works
We pride ourselves on the service that we provide and are always on hand to answer any queries you may have.
Our legal fees facility will cover costs associated with the family proceedings; this includes financial remedy costs, disbursements and children proceedings running concurrently.
Key features
No minimum or maximum facility limits
Interest rates range between 14% p.a. and 24% p.a, dependent on risk & complexity (interest does not compound)*
Admin fee of 1.5% of the approved facility size, subject to a minimum fee of £450.
No monthly repayments
Approval within 2-3 working days
Fast approvals and release of funds
Instant access to the online portal for both borrowers and solicitors
No hidden fees or charges
Accessing your loan
Your solicitor will request a drawdown as and when invoices are due for payment
You are invited to electronically approve (or otherwise) the request
We will remit the funds to your solicitor within 1 working day
Upon conclusion of your proceedings, we are repaid from the settlement proceeds
Increase and loan term extension requests are also accommodated if necessary.
*Representative example of a 14% p.a. loan facility: A £100,000 drawdown will be repayable by one payment deferred for 12 months at an APR of 17.1% fixed. The total repayable after 12 months will be £116,500. The APR includes interest, a 1.5% administration fee and an indicative cost for obtaining independent legal advice (£275 incl. VAT).
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The benefits of a legal fees loan
Access
Our loans will help to provide access to the best legal representation available; speeding up the process and enabling you to get the fair result that you deserve.
Options
Certainty of funding gives you greater strategic optionality in how you approach negotiations.
Peace of mind
Knowing that your proceedings are fully funded provides peace of mind that you can concentrate on getting the best result for you.
Credibility
A ‘hard’ loan from Rhea will carry more credibility in court than a ‘soft’ loan from a family member or friend; meaning your costs are more likely to be met in any award made.
Maintenance loans
We also offer maintenance loans alongside your legal fees facility, which we will be pleased to discuss with you in more detail.
Our maintenance loans offer you peace of mind; your monthly needs can be met and there are no monthly repayments.
They allow you to avoid costly maintenance pending suit applications and give you access to the funds you need.
The certainty on timing of payment will eliminate any unnecessary worries throughout this difficult process.
The cost of interest is often lower than legal costs associated with a maintenance pending suit application, saving you money in the long run.
Frequently Asked Questions
How does it work?
We work with your solicitors, paying them directly upon receiving your authority to do so. You will need to ask your solicitor to apply for a loan on your behalf. Once your application has been approved, your solicitor will request a drawdown against the facility to pay the invoices they present. You will need to approve each drawdown request before remittance.
What are the charges?*
Interest is only charged on drawn amounts and will be between 14% p.a & 24% p.a, based on the risk and complexity of the case. The rate will be confirmed early in the application stage. This is a simple interest rate and does not compound, i.e. you do not pay interest on interest. There is also a 1.5% admin fee, subject to a minimum amount of £450, which is based upon the total facility amount sought. This fee is payable with the rest of the facility, at the conclusion of proceedings. You do not need to make any periodic payments. You do not need to make any period payment during the course of the loan.
Can I change solicitor?
If you change solicitor and have completed a drawdown of funds, the facility would become due and repayable immediately. However, if your new solicitor has an agreement with Rhea Family Finance, then you may be eligible to apply for a new facility, which could be used to offset the original liability.
What is the lending criteria?
You must be between the ages of 21 and 75, a UK resident and remaining in the UK for the duration of the proceedings. The UK-based assets/lump sum you are entitled to must be at least 3 times greater than the amount of the loan request. We will run a credit search, with your permission, and will not lend to those with active CCJs or recent bankruptcy.
Will this affect my credit score?
Rhea will carry out a hard search on your credit file, which may affect your credit score.
Do you take security?
Rhea will take a Deed of Assignment over your share of the proceeds of the financial proceedings. This means that Rhea will be repaid (loan amount + interest + fees) from your divorce settlement proceeds. We will not take a charge over your property.
Does my solicitor have an incentive to offer this product?
Absolutely not. Your solicitor should make it clear to you that this product is available to you, but we do not offer them any incentives for you to obtain finance with us. Your solicitor will not recommend using Rhea Family Finance, only make an introduction.
How can I contact Rhea?
You can reach any of our account managers by telephone on 0207 062 4038 or by e-mail at customer.services@rheafamily.co.uk.
How do I repay the loan?
Upon settlement of your financial proceedings, the loan amount, together with all interest and fees, will be passed directly to Rhea Family Finance by your solicitor. You will be issued a settlement statement by Rhea confirming the completion of the loan and confirming the interest and fees charged. You can also download a statement at any stage from the portal showing the current balance outstanding on your loan.
Can I repay early?
Yes (in part or in full). There are no charges for early repayments of a facility.