It's simple really. A UK loans provider gives you a sum of money - normally a lump sum, and you are expected to pay that amount back using regular payments over a defined period. Your loans payments go partly towards repaying the capital on the loan and partly towards paying off the interest on the loan.

But is it really personal loans that you want? Well, you need to look at a few factors. How long will you need in which to repay the loans? Is it less than a year? If it is then you would be better advised to use a credit card. If you need to borrow money for between one and five years, then loans might be better. Then there is the amount of money you want to borrow. If it is less than £5000, then having a credit card would mean you can pay it off at your own pace, although the interest charges will be higher. Should it be over £5000, you should use loans.

Many people also get what is known as a debt consolidation loan, which is where you pay off a number of different debts with one single loan. You can use this to pay off credit cards, and other loans and this can reduce your overall cost of credit. But, it is usually a secured loan - likely to be on your home - which is consolidating unsecured debts, so whilst the interest you pay will be down, your risks will be raised significantly.

There are many types of loan providers. Banks and building societies offer loans, as do more specialist finance companies. It pays to shop around in such a competitive market. It also pays to learn about the different criteria used by the different lenders when they choose their borrowers.

You can find secured and unsecured loans and you also have the facility to apply online.

We also look at the student loans, and career development loans, as well as the bridging and home improvement loans, which are more property-related.

 

What sort of loan is best for you? There are secured loans, unsecured loans, fixed rate loans, variable rate loans, capped rate loans, car loans, homeowner loans, consolidation loans, and more. What do you need the loan for?

Fixed Rate Loans

A fixed rate loan or mortgage, as the name suggests, is a loan where the rate of interest is fixed for at least part of the loan period but not necessarily the entire loan period. The advantage of this form of borrowing is that it means the borrower and the lender will have a more accurate idea of how much will be paid back by the borrower in the final analysis. Furthermore, as the interest rate is fixed, it will not be affected by fluctuations in interest rates. Thus, you will not benefit from reduced interest payments that would accompany a drop in interest rates but you also wouldn't be required to pay more in the event of interest rates going up. When the likelihood is that interest rates are set to rise and remain at a high or higher level for some time then fixed rate loans are likely to increase in popularity.

Variable Rate Loans

The opposite to a fixed rate loan could be considered to be a variable rate loan or mortgage. Variable rate loans tend to be cheaper than fixed rate loans at the outset as fixed rate loans have to factor in the probability of interest rates increasing. The interest you pay on a variable rate loan will normally vary with either the base rates of one or more high street clearing banks or the London Interbank Offered Rate (LIBOR). Variable rate loans tend to be more popular when the financial outlook suggest that interest rates are likely to drop and stay low for an extended period.

Capped Rate Loans

Capped rate loans and mortgages allow you to benefit from drops in the interest rate but increases in interest rates above the level of the cap set will not affect your repayments above the capped interest rate. As such, you benefit from drops in the base interest rate but not from increases in the interest rate. Like fixed rate loans, with a capped rate loan the rate of interest is not necessarily capped for the entire loan period. Capped rate loans are most useful during periods when interest rate fluctuations are frequent in number and great in magnitude.

Personal Loans

A personal loan is simply a loan to an individual that can be for any number things. A personal loan can be a secured or unsecured loan and is not always dependent upon your credit standing. There are loans for people with adverse credit as well as for those with good credit. Personal loans are still available to people who may have, for example, defaults or a CCJ (county court judgement) against them. However, personal loans for people with bad credit history tend to be secured loans as a result of the perceived increase in risk.

Homeowner Loans

A form of personal loan is a homeowner loan. As inferred by the title, a homeowner loan requires you to own you own home which the loan you get will be then secured against. Homeowner loans tend to be easier to get provided that you have equity in your property. For this reason, those with CCJs (county court judgements) or arrears or poor credit history could find it easier to apply for homeowner loans.

 

Payment Protection

When taking out loans or mortgages of any kind, it is often advisable to take out payment protection. Payment protection insurance could prove essential if your income should be interrupted for any number of reasons (e.g. illness, injury, or unemployment). Payment protection insurance can then take over your monthly payments for you until such a time that you can resume the monthly repayments yourself. Payment protection can be offered by a lender at the same time as the loan or can be obtained separately from a third party company.

Goodfellows Insurance Payment Protection

Three months FREE cover (for new or re-mortgages) Premiums from just £2.45 (per £100 of monthly benefit) Back-to-day-one cover (30 days waiting period) Online application and direct debit For UK home secured loan visit protectiononline.co.uk

Mortgage SafetyNet

full unemployment and disability cover. Unemployment only cover or disability only cover is available at a reduced cost. Free cover benefits for both new and existing mortgage borrowers. Competitive premium rates after the free cover period. Back-to-Day-One benefits payable after 30 days. Claim benefits are paid for up to 12 months. It covers employed and self-employed applicants. Simple application procedure (no medical required). Cover can be transferred from one lender to another. For UK secured loan visit Mortgage SafetyNet

Consolidation Loans

On the face of it, the idea of getting a loan to help manage your debts may seem contradictory. However, a consolidation loan could prove the ideal way to reduce your monthly outgoings to an amount that you can afford. You can get a loan to payoff your other debts so that you are left with one debt, one interest rate and one monthly repayment which is lower than your previous monthly repayments combined.

Car Loans

Car loans are self-explanatory and you will not need us to tell you what a car loan is about. However, there are car loans (or all purpose loans) that you can get that will provide you with a loan and no more. On the other hand, there are other car loans companies from whom you can purchase a car. This in itself can include benefits like break down cover, the car delivered to your door, collection or part exchanging of your old car. For this reason, you could think of such car loans specialists in the same vain as you might any car dealership because there may be additional benefits offered from different lenders that you might find more appealing.

You should remember that if you do not keep up repayments on a secured loan or mortgage then your home or other security is at risk

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Being refused credit

How creditors decide whether or not to give credit

Lenders use a number of methods to decide whether or not to give credit. If you are told you cannot have credit you can apply again, either to the same company or another one. You have no right to be granted credit or to be given a reason why credit has not been granted, although some creditors may give this information.

Credit scoring

Points are awarded for such things as occupation, salary, marital status and area of residence. Credit is given if you score enough points. If you apply for credit, you must be told if this method has been used.

If your application has been refused, you can ask for the main reason for refusal and for the decision to be reviewed by the creditor. You should give the creditor any additional information that you think should be taken into account.

Credit reference agencies

A credit reference agency builds up information on your financial position from the electoral roll, county court judgments, bankruptcy details, and payment record in previous agreements. The payment record may include details of other people living at the same address, and their record may affect whether or not you are given credit.

If you have had your application for credit refused because of information on a credit reference agency’s records you can ask the creditor which credit reference agency it used. You can then get a copy of the record from the agency. You will have to pay a fee for this. You can ask for your record to be corrected if it is incorrect or misleading. If the record includes details of other people living at the same address, you can ask to be dissociated from them. You may also be able to ask to be assessed as a separate individual. There is, however, still no guarantee that credit will be given.The contact details of the main credit reference agencies are:-

Where can I buy a low rate secured loan ?


this list of companies' offering a secured personal loan for UK home owner's or mortgage payers at Fast Cash Today gives you most of the sites you would probably want to visit for a fast online secured loan .