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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.
About The Author
John Mussi is the founder of Direct Online Loans who
help UK homeowners find the best available loans via
the www.directonlineloans.co.uk
website.
Article Source: www.ezinearticles.com |
