The UK Loans market has never been more competitive than it is today, with so many companies vying for your business.
Every newspaper seems to be crammed with advertisements for loans, likewise television and the Internet.
So why so any? and What's the difference? you may well be thinking.
These companies are advertising loans which fall into three main categories: Unsecured Loans, Secured
Loans and Bad Credit Loans.
Unsecured loans are open to all applicants, homeowners, tenants and customers who live with parents/
family. Interest rates do vary based on the amount you are applying for and the lenghth of time or "Term" of the loan e.g
24 months, 48 months etc.
Most unsecured loans require you to have NO previous adverse credit I.E credit defaults,
CCJs or payment arrears.
Unsecured simply means that NO security is required. Because of this much of the underwriting is based on a
Credit Search a check on your credit history.
The lower the advertised rate, the better, although the lower the rate the stricter the underwriting is likely to
be. Loan limits are lower with unsecured loans, typically £25,000 max, with most loans being between five and fifteen
thousand.
Of course you should apply for the lowest rates advertised and you'll find many Low Rate deals from the UKs best
known lenders available in our
Unsecured Loans category. You can visit their websites and apply direct online.
Secured Loans available ONLY to homeowners, the lender takes a "Second Charge" or security
on your property. This means the loan company add their charge behind the mortgage provider where applicable.
Because these loans are secured on your property the interest rates are lower than with unsecured loans and the
terms of the loan can be much longer.
This means you can borrow more over a longer period and enjoy lower payments. The amount you can borrow is
usually based on the amount of
equity or unencumbered value you have in your property. Some secured loan companies DO offer loans to homeowners with
NO equity although expect to pay a slightly higher rate of interest. You would also need to have a good credit rating. With
secured loans not so much emphasis is based on your credit history, although if you've experienced credit problems you will
be paying a higher rate. You can compare and apply online direct to the UKs big name lenders for secured loans by visiting
our
Secured Loans category.
Bad Credit Loans With an estimated 1 in 4 adults in the UK being unable even to open a regular
bank account with full facilities, the bad credit loans sector is every bit as competitive a market as that for
regular loans.
If you are homeowner and have experienced credit difficulties obtaining a secured loan is the easiest and cheapest route
for you to choose. This assumes however that you have some available equity to secure the loan against. If not you will find there
are fewer lenders and that the interest rates will be higher.
Bad Credit Loans unsecured are now heavily advertised in the newspapers as well as the Internet. These loans are available
to all applicants over 18, homeowners and tenants. If you are a homeowner you may well be able to borrow
more, but be aware that bad credit unsecured loans are much more expensive. If you have equity in your home, a secured loan
will cost you less.
Bad credit loans for tenants are harder to find, although there are a number of specialist UK providers. Companies providing
bad credit loans unsecured typically offer loans from around £250 -£3000. You can view a number of these and to apply
directly online in our
Bad Credit Loans category.
