ersonal loans come in two
basic forms – unsecured and If, however, you are looking to
secured. Depending on your borrow over £25k and you are a
credit history and whether or not homeowner, then the secured route
you are a homeowner, the type of is your likely option. With a
personal loan available to you secured loan, you can often
may vary. When you apply for a borrow up to 125% of your home’s
personal loan, the lender will equitable value over a timescale
carry out a check on your ranging up to 25 or 30 years. As
previous borrowing history and the lender is securing the loan
will come to a decision based against your property, interest
upon your previous credit rates are lower and it usually
history. If you have a good provides a cheaper option as a
credit rating and want to borrow longer term finance solution than
a smaller amount (under £25k) an unsecured loan.
over a shorter repayment period
(usually no more than 10 years), If, on the other hand, you have a
then it is likely you will be bad credit history, then even
accepted for an unsecured though it is difficult to obtain
personal loan. These normally a loan on the high street, there
come with a higher interest rate are many reputable brokers who
than a secured loan. However, the specialise in bad credit loans.
loan is not secured against any With an estimated 1 in 5 people
of your assets and is granted in the UK having some kind of
based on the lender’s opinion adverse credit history on their
that you have the ability to file, brokers can offer people
fulfil the repayments so they are with bad credit an unsecured
a good option for lower sums of loan. In most cases, however,
borrowing and especially if you they will usually encourage
are not a homeowner. homeowners who have a poor credit
history to opt for the secured interest rate than all of your
route to minimise the risks. other existing agreements leaving
Therefore, even if you do have you with more money in your
CCJs, arrears and a bad credit pocket. If your other combined
rating, you can still pick up debts are over £25k and/or if you
great deals on secured loans and, have bad credit, then the secured
as the loan is secured against option will be the route to take
your property, the lender does but if you have a good credit
not need to worry about your history and your debts are less
previous credit history. than £25k, then the unsecured
route may be your preferred
A debt consolidation loan is a choice.
way to bundle all your credit
cards, store cards and HP Therefore, when it comes to the
agreements into one simple loans market, there are many
affordable monthly repayment. options available no matter what
They have a great reputation for your circumstances and it is
enabling people who have amassed simply a matter of finding out
a lot of multiple debts to get what are the best options for you
back on track. They come in both personally.
unsecured and secured form and
will usually mean a lower
About the Author:
Getting good advice about loans and borrowing is important. Edward Banks publishes more of his guidance on the website www.finance-team.co.uk
Read more articles by:
Edward Banks
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