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By John Mussi
Many people are confused by the different types of loans available.Here is a
helpful summary of the most common loans available today.
Bad Credit Personal Loan
A Bad Credit Personal Loan is a loan designed for the many people with a bad
credit rating. However created, your past record of County Court Judgements,
mortgage or other loan arrears can live on to deny you access to finance that
other people regard as normal. If you are a home owner with equity in your
property, a Bad Credit Personal Loan can bring that normality back to your
life. Secured on your home, a Bad Credit Personal Loan can give you the
freedom, for example, to do the home improvements or buy the new car you
really wanted. With a Bad Credit Personal Loan you can borrow from £5,000 to
£75,000 and up to 125% of your property value in some cases.
Bridging Loan
A bridging loan as the name implies is a loan used to “bridge” the financial
gap between monies required for your new property completion prior to your
existing property having been sold. Bridging loans are short term loans
arranged when you need to purchase a house but are unable to arrange the
mortgage for some reason, such as there is a delay in selling your existing
property. The beauty of bridging loans is that a bridging loan can be used to
cover the financial gap when buying one property before the existing one is
sold A bridging loan can also be used to raise capital pending the sale of a
property. Bridging loans can be arranged for any sum between £25000 to a few
million pounds and can be borrowed for periods from a week to up to six
months. A bridging loan is similar to a mortgage where the amount borrowed is
secured on your home but the advantage of a mortgage is that it attracts a
much lower interest rate. While bridging loans are convenient the interest
rates can be very high.
Business Loan
A business loan is designed for a wide range of small, medium and startup
business needs including the purchase, refinance, expansion of a business,
development loans or any type of commercial investment. Business loans are
generally available from £50,000 to £1,000,000 at highly competitive interest
rates from leading commercial loan lenders. A business loan can be secured by
all types of UK business property, commercial and residential properties.
Business Loans can offer up to 79% LTV (Loan to Valuation) with variable
rates, depending on status and length of term. Business loans are normally
offered on Freehold and long Leasehold properties with Bricks and Mortar
valuations required. Legal and valuation fees are payable by the client.
Car Loan
The main types of car loans available are Hire Purchase and Manufacturer’s
schemes. Hire purchase car finance is arranged by car dealerships, and
effectively means that you are hiring the car from the dealer until the final
payment on the loan has been paid, when ownership of the vehicle is
transferred to you. A Manufacturers` scheme is a type of loan that is put
together and advertised by the car manufacturer and can be arranged directly
with them or through a local car dealership. You will not be the owner of the
vehicle until you have repaid the loan in full, and the car will be
repossessed if you default on repayments.
Cash Loan
Cash Loans also known as Payday Loans are arranged for people in employment
who find themselves in a situation where they are short of immediate funds. A
Cash Loan can assist you in this situation with short term loans of between
£80 and £400. Loans are repayable on your next payday, although it is
possible to renew your loan until subsequent paydays. To apply for a Cash
Loan you must be in employment and have a bank account with a cheque book. A
poor credit rating or debt history is initially not a problem.
Debt Consolidation Loan
Debt consolidation loans can give you a fresh start, allowing you to
consolidate all of your loans into one - giving you one easy to manage
payment, and in most cases, at a lower rate of interest. Secured on your home
debt consolidation loans can sweep away the pile of repayments to your credit
and store cards, HP, loans and replace them with one, low cost, monthly
payment – one calculated to be well within your means. With a Debt
Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of
your property value in some cases. It can reduce BOTH your interest costs AND
your monthly repayments, putting you back in control of your life.
Home Loan
A Home Loan is a loan secured on your home. You can unlock the value tied up
in your property with a secured Home loan. The loan can be used for any
purpose, and is available to anyone who owns their home. Home loans can be
used for any purpose such as, home improvements, new car, luxury holiday, pay
of store card or credit card debt and debt consolidation. With a Home Loan
you can borrow from £5,000 to £75,000.
Home Improvement Loan
A Home Improvement Loan is a low interest loan secured on your property. With
a Home Improvement Loan you can borrow from £5,000 to £75,000 with low
monthly repayments. The loan can be repaid over any term between 5 and 25
years, depending on your available income and the amount of equity in the
property that is to provide the security for the loan. A Home Improvement
Loan can help you with a new kitchen, bathroom, extension, loft conversion,
conservatory, landscaping your garden or new furniture. You can even use it
on non-house expenditure like a new car or repaying credit card or other debts.
Home Owner Loan
A Home Owner Loan is a loan secured on your home. You can unlock the value
tied up in your property with a secured Home Owner loan. The loan can be used
for any purpose, and is available to anyone who owns their home. Home owner
loans can be used for any purpose such as, home improvements, new car, luxury
holiday, pay of store card or credit card debt and debt consolidation. With a
Home Owner Loan you can borrow from £5,000 to £75,000.
Payday Loan
Payday Loans also known as Cash Loans are arranged for people in employment
who find themselves in a situation where they are short of immediate funds. A
Payday Loan can assist you in this situation with short term loans of between
£80 and £400. Loans are repayable on your next payday, although it is
possible to renew your loan until subsequent paydays. To apply for a loan you
must be in employment and have a bank account with a cheque book. A poor
credit rating or debt history is initially not a problem.
Personal Loan
There are two categories of personal loans: secured personal loans and
unsecured personal loans – See individual titles below. Homeowners can apply
for a Secured personal loan (using their property as security), whereas
tenants only have the option of an unsecured personal loan.
Remortgage Loan
A remortgage is changing your mortgage without moving your home. Remortgaging
is the process of switching your mortgage to another lender that is offering
a better deal than your current lender thereby saving money. A remortgage can
also be used to raise additional finances by releasing equity in your
property. You can borrow from £25,000 up to £500,000. Rates are variable,
depending on status.
Secured Loan
A secured loan is simply a loan that uses your home as security against the
loan. Secured loans are suitable for when you are trying to raise a large
amount; are having difficulty getting an unsecured loan; or, have a poor
credit history. Lenders can be more flexible when it comes to secured loans,
making a secured loan possible when you may have been turned down for an
unsecured loan. Secured loans are also worth considering if you need a new
car, or need to make home improvements, or take that luxury holiday of a
lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over
any period from 5 to 25 years. You simply select a monthly payment that fits
in your current circumstances.
Secured Personal Loan
A Secured Personal Loan is simply a loan that is secured against property.
Secured personal loans are suitable for when you are trying to raise a large
amount; are having difficulty getting an unsecured personal loan; or, have a
poor credit history. Lenders can be more flexible when it comes to Secured
personal loans, making a Secured personal loan possible when you may have
been turned down for an unsecured personal loan. Secured personal loans are
also worth considering if you need a new car, or need to make home
improvements, or take that luxury holiday of a lifetime. You can borrow any
amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years.
Student Loan
A student loan is way of borrowing money to help with the cost of your higher
education. Applications are made through your Local Education Authority
A student loan is a way of receiving money to help with your living costs
when you`re in higher education. You start paying back the loan once you have
finished studying, provided your income has reached a certain level.
Tenant Loan
A tenant loan is an unsecured loan granted to those that do not own their own
property. A tenant loan is always unsecured because in most cases, if you are
renting your accommodation, you do not have an asset against which you can
secure your loan. Tenants sometimes find that some loan companies will only
lend money to homeowners. If you are a tenant you need to look for a company,
bank or building society willing to give you an unsecured loan.
Unsecured Loan
An unsecured loan is a personal loan where the lender has no claim on a
homeowner`s property should they fail to repay. Instead, the lender is
relying solely on the ability of a borrower to meet their loan borrowing
repayments. The amount you are able to borrow can start from as little as
£500 and go up to £25,000. Because you not securing the money you are
borrowing, lenders tend to limit the value of unsecured loans to £25,000. The
repayment period will range from anywhere between six months and ten years.
Unsecured loans are offered by traditional financial institutions like
building societies and banks but also recently by the larger supermarkets
chains. An unsecured loan can be used for almost anything - a luxury holiday,
a new car, a wedding, or home improvements. An unsecured loan is good for
people who are not homeowners and cannot obtain a secured loan for example; a
tenant living in rented accommodation.
Unsecured Personal Loan
An Unsecured personal loan is a personal loan where the lender has no claim on
a homeowner`s property should they fail to repay. Instead, the lender is
relying solely on the ability of a borrower to meet their loan borrowing
repayments. The amount you are able to borrow can start from as little as
£500 and go up to £25,000. The repayment period will range from anywhere
between six months and ten years. An Unsecured personal loan can be used for
almost anything - a luxury holiday, a new car, a wedding, or home
improvements. An Unsecured personal loan is good for people who are not
homeowners and cannot obtain a secured loan for example; a tenant living in
rented accommodation.
You may freely reprint this article provided the author`s biography remains
intact:
John Mussi is the founder of Direct Online Loans who help UK homeowners find
the best available online loans via the http://www.directonlineloans.co.uk
(http://www.directonlineloans.co.uk) website.
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