Types of UK Loans
Confused by the amount of loans on the market in the UK? Well you are not alone, there are personal loans, secured loans, car loans, debt consolidation loans, business loans, mortgages, finance companies...and many more. With so many options available to us for credit this can become a little confusing. Then the question pops up 'How do we compare these loans?'.
We have tried to list as many loans that we know are available in the UK, their function, desirability and other factors such as credit rating, repayment periods, typical apr.
What is an unsecured personal loan? Well put quite simply, it’s whatever you want it to be, a personal loan can be used for anything you want. Once you’ve negotiated the murky waters of choosing the best deal for you, you can spend the money on whatever you chose.
An article overviewing the UK student loan market, focusing on who qualifies and find out what amounts of income you need to earn to become eligible for this Government lending.
Many borrowers choose secured loans because they are readily accessible to property owners. The property is usually owner-occupied, but some lenders will underwrite secured loans to landlords of property with tenant occupants.
If you are looking for a mortgage in today’s market place, you may well be completely bewildered by the wealth of options out there (there are around four thousand mortgage packages available at the moment!) but don’t panic.
IVA – Individual Voluntary Arrangement
In the UK the levels of consumer have debt have rocketed over recent years, with many households and individuals juggling a number of debts and trying to make crippling repayments each and every month.
With interest rates at the lowest level in many years, many homeowners are taking out remortgage loans as a way to save on monthly payments. There are a wide variety of lenders who offer remortgage loans, many of whom have special remortgage departments.
Fixed Rate Mortgages
What are the benefits of a fixed rate mortgage? Which lenders are offering which products and how do they compare?
What is a debt consolidation loan? Put simply, it is a loan that is used to pay off other existing debts, resulting in just one monthly payment. This type of loan is commonly used to combine unsecured debt, making it easier to manage your overall budget and stick to a repayment plan.
If you have a bad credit history you have probably found it’s hard to get a loan. Whether it’s for a home, a car, or a personal unsecured loan, people with bad credit typically have a harder time finding a lender and end up paying higher interest rates.
Car loans usually fall into the category of unsecured personal loans, although purchasing a car can also be done through a secured loan. The information below will help you better understand the differences between these options.
A payday loan, also know as a cash advance or paycheque advance, is a small- typically between around £80 and £100, dependant on your salary- short term loan which is intended to bridge the gap between wages and cover unexpected expenses.
Business loans are commonly used by business owners to access cash needed for business start up, growth or improvement. There are a wide variety of programs and lenders available, so it’s important to understand your specific needs and pursue a loan that fits your situation.
Weddings are expensive, there’s no doubt about that! Many people go into debt to pay for them, and loans for weddings are usually unsecured personal loans, although they can be obtained as secured loans, too.
Graduate loans are an increasingly common form of unsecured personal loans that allow new graduates to consolidate debt. For many people this is an attractive way to firm up their finances when making that first foray into the world of working full time
Career development loans are a popular way to fund vocational education and training. They are available to a wide variety of people from a broad range of educational and employment backgrounds.
A great number of bank accounts include some form of overdraft facility. The purpose is to allow the account holder to access funds beyond what they hold in the account, up to a specified limit.
Home or homeowner owner loans are a borrowing option open to most home owners. They are considered a secured loan, allowing the borrower to access some of the equity in their home.
There are many ways to finance your business. Whether you are just starting up and need to raise capital, or you are growing an existing enterprise, a business loan may be what you need.
Self Employed Loans
You are considered to be self employed if you are a sole trader/proprietor running a business or profession, a partner in a business, a consultant or a contractor (independent).
You may assume it would be impossible to obtain a loan if you are unemployed, but nowadays the truth is, although it may be more difficult and your choice of loan and provider more limited, it is entirely possible.
Credit cards are a very easy way to borrow money. Card companies offer you credit up to a predetermined value and you can spend this on goods, services or make cash withdrawels which in effect make a credit card a type of loan, but one of the most expensive loan types available.