Loan Terminology Explained
A secured loan is one where the borrower guarantees repayment of the loan by providing collateral (usually the borrower's home or property) which is at risk if loan repayments secured upon it are not made. A secured loan can therefore be used for just about any purpose, making that new car, dream holiday or home improvements more affordable. Being a homeowner puts you in a good position when seeking a loan, as there are scores of UK companies that specialise in lending money to the homeowner, and many of these companies can offer large sums of money over long periods of time and at really competitive rates. Please ensure you get several uk secured loan quotes to ensure you get the best rate.
An unsecured loan one where there is no asset secured on the loan. Many homeowners in the UK choose this type of loan because there is less risk involved - they are not in danger or losing their home because the loan is not secured on it. Unsecured personal loans are particularly suitable for tenants, renters or students as property collateral is not required by the lender. Of course, this makes the loan riskier for the lender and therefore you'll find that the monthly repayments are higher than on a secured loan. The lender will base his decision on whether to lend money to a tenant based upon their employment status and or ability to repay the loan. Please ensure you get several uk unsecured loan quotes to ensure you get the best rate.
Adverse Credit or Poor Credit History Loans
If you have experienced trouble in the past obtaining uk credit, or if you have CCJ's, defaults, or arrears against your name, crtain lenders may be able to provide assistance. Having a poor credit rating can make it difficult when trying to obtain a loan, as lending money is all about assessing risk, and for many lenders someone with an adverse credit rating due to a poor credit history presents a risk of non-payment that they are unwilling to take on. However the market for poor credit history lending has grown over the last few years so mor and more lenders are willing to consider a broader set of circumstances. Please try several of our featured lenders for your choice of secured or unsecured loan to find the one best suited to your personal circumstances.
Debt Consolidation Loans
A debt consolidation personal loan collates all existing debts and converts them into a single, manageable monthly payment. If an individual has several outgoing monthly payments, such as credit card payments, store card payments or even other personal loan payments, a debt consolidation deal can prove to be very useful. In this day and age of 'putting it on the plastic' many people in the UK have found themselves trapped in debt, due to the relative easy of obtaining credit and store cards, overdrafts and bank loans. The interest rate on the consolidation loan is typically lower than the combined rate of the multiple borrowings however the loan repayment term is usually greater. Please try several of our featured lenders for your choice of secured or unsecured loan to find the one best suited to your personal circumstances.
Most private car buyers find personal loans better than hire purchase agreements because they can be easy to obtain, and allow immediate ownership of the vehicle. The fact that the customer has all of the required cash ready also gives him or her much more bargaining power. Nowadays car loans also mean caravan loans, motorhome loans, boat loans, jet ski loans and loans for other recreational vehicles.
Currently, in the UK, the main source of financial support for students is the student loan. It is considered to be the cheapest way for students to borrow money in order to meet their living costs while studying. Whether you are a student seeking additional finance, perhaps to fund travel and living expenses during a period of study abroad, or a recent graduate considering consolidating your other monthly debts, with a low-cost student loan you have one lender, one loan and one low interest rate to deal with each month. Alternatively, if you're a parent struggling with the additional cost of supporting your child through university or college, all in all, a lowcost student loan could be a great way to decrease the hassle and worry associated with managing your monthly finances.
Self Employed Loans
Self employed loans used to be hard to find and expensive. But today, with more and more people working for themselves, self employed loans are not only more widely available than ever, but as interest rates have fallen to their lowest in years, more affordable. So whether you're a contractor or you run your own business, whether you have certified accounts or no proof of income, you can still raise finance with a secured or unsecured self-employed loan. Self employed loans are available from a wide variety of lenders and can be tailored to suit your individual financial circumstances. For example, if you have an adverse credit history or bad credit rating, such as mortgage arrears, credit card problems or payment defaults, you can still apply for a self-employed loan. If you can't prove how much you earn, we can help to source a lender who will allow you to self-certify your income. If you have certified accounts, we can look for a self employed loan that offers similar rates and benefits to those you would enjoy if you were employed. If you are a homeowner and your property is worth more than the mortgage owed on it, you can borrow against that equity with a self employed loan to raise cash for whatever you want. You could consolidate your existing debts and pay off mortgage arrears, bills, credit cards or overdrafts. You could splash out on a luxury like a new car or a holiday or improve your home.
UK Credit Cards
Normally, Credit cards can prove to be a flexible and convenient method to obtain credit. There are several different types of credit card: standard, platinum or gold, charity or affinity and loyalty cards. Standard cards are the most common, with Visa and MasterCard being two of the most common companies offering credit. Platinum or gold cards are generally for people of a higher income, and have other benefits associated with them. Charity or affinity cards donate a small percentage of the spent balance to a charity associated with the credit company, while loyalty cards offer incentives such as cash bonuses, air miles etc.
The UK Credit Card market today is a maze. Interest rates vary significantly between card companies. Some companies provide interest free periods, while other companies may charge penalty payments for late payments or if the credit limit is exceeded. Many feature an incentive of zero low introductory interest rates for a limited period e.g. 6 months which can be used to a borrower's advantage. Following expiry of the introductory period simply switch to a different credit card company offering an introductory offer. This can result in quite significant interest savings for the card holder but you have to remember when your introductory deal expires, or risk paying the full interest rate.
General Borrowing Advice