Personal loans can be divided into two categories: secured personal loans and unsecured personal loans. Homeowners can apply for a Secured personal loan (using their property as security), whereas tenants only have the option of an unsecured personal loan. Below is a more detailed outline of both types of loans:
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.
Benefits of Secured personal loans include:
Lower monthly repayments than unsecured personal loans
The ability to borrow more money
Spread repayments over a longer period of time More detailed information??
A Secured personal loan is a type of loan available to people with securable assets. Usually these assets take the form of property, such as a home; this is why Secured personal loans are often referred to as 'homeowner loans', "home loans" or "second charge loans".
You do not have to own your own home outright to be able to take out a Secured personal loan; if you have a mortgage you can put the proportion of the home that you own up as security.
Because a Secured personal loan is secured on property, most lenders will approve your loan even if you have a history of adverse credit such as county court judgements (C.C.J's), defaults and arrears. This make Secured personal loans very attractive to people who would otherwise not qualify for a loan from their local bank.
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. Generally, Secured personal loans tend to be cheaper than unsecured personal loans and other forms of borrowing.
The interest rate for a Secured personal loan depends upon various factors such as the amount of money you borrow, the length of time and personal details. You can also insure your payments for peace of mind, so you do not have to worry if you lose your job or are unable to work because of accident or sickness.
Secured personal loans are arranged through leading financial institutions so you can be assured of a professional and responsible service.
Once your Secured personal loan application has been processed and accepted you will be made a no obligation offer. It usually takes around 14 ? 28 days for a secured personal loan to be completed.
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. Because you not securing the money you are borrowing, lenders tend to limit the value of unsecured personal loans to £25,000.
The repayment period will range from anywhere between six months and ten years. Unsecured personal loans are offered by traditional financial institutions like building societies and banks but also recently by the larger supermarkets chains.
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.
There are a few things to consider before applying for an Unsecured personal loan: Unsecured personal loans are invariably more expensive than secured loans, and the repayment periods demanded by lenders are shorter too. This is because they have no guarantee that you can repay the loan, and therefore charge you more in interest to cover the cost of insurance policies that they need to take out to protect them should you default on repayments. In the event that a borrower does not pay up, the lender will invoke the terms of the legally-binding credit agreement and pursue the borrower through the legal system.
Lenders are obliged by law to tell you how much they charge for this type of finance and this is worked out as an annual percentage rate (APR). Ask whether the APR figure quoted is 'typical' or is what every applicant is charged. You should also investigate whether the interest rate charged is fixed for the lifetime of the loan repayment period, or whether it varies with the base rate. Check too on whether there are early repayment penalties.
Unsecured personal loans vary from lender to lender, so it pays to shop around before making a final decision.
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 loans via the http://www.directonlineloans.co.uk website.
If you thought your home is worth nothing except for... Read More
Can I Ask my Family for a Loan to Pay... Read More
Here are some useful tips on Personal loans. You can... Read More
Student loan debt is a problem that affects many former... Read More
If you're in the process of trying to find a... Read More
Personal loans can be divided into two categories: secured personal... Read More
Trying to find good UK secured homeowner loans might seem... Read More
While most companies seeking venture capital initially think about angel... Read More
One of the most enduring myths of loan industry is... Read More
Parents should begin saving money early for their children's college... Read More
Military signature loans are easy to come by. When looking... Read More
You were on your regular walk with your wife, and... Read More
Financial statements, salaries, income proof, documents, paycheck, W-2 forms, 1099's... Read More
Here is a useful guide to business loans. Business loans... Read More
A Personal secured loan can offer many benefits, some of... Read More
Trying to get a bad credit personal loan can be... Read More
A loan is the reason many students are able to... Read More
A Payday loan is a small, short-term, high-rate loan. It... Read More
A bridging loan has many benefits, some of which are... Read More
A secured loan is a personal loan which is generally... Read More
You just finished high school and realize you have two... Read More
Secured loans have become very popular over recent years, with... Read More
If the statistics for the quarter ended April 2005 are... Read More
Since the invention of the first self propelled car by... Read More
The conception of wedding has changed over the years. Its... Read More
A second mortgage is a loan that is secured by... Read More
A Bad Credit loan is a personal loan for people... Read More
Somebody once said, 'Business is not financial science; it's about... Read More
Before entering college, you may find yourself pondering exactly how... Read More
A home equity loan is essentially a type of second... Read More
Applying for a payday loan online is a quick and... Read More
Regardless of your trading style; day trading, swing trading, or... Read More
Borrowing money has become more and more popular in the... Read More
It is quite common for someone, who is having trouble... Read More
For the individual in need of cheap loans UK, it... Read More
Secured loans are becoming increasingly popular due to their flexibility.... Read More
A $500 payday loan can be a real life saver... Read More
If you find yourself in a situation where you need... Read More
Car loans are a tempting way to purchase a new... Read More
So you have decided you want a motorcycle and you... Read More
Payday loan companies gives the borrower the amount of the... Read More
Payday loans, also known as cash advance, are a useful... Read More
Looking for a cheap personal loan can sometimes be a... Read More
Online payday loans companies offer quick approval with their online... Read More
A commercial business loan is designed for a wide range... Read More
Online car loans enable you to get a good quote... Read More
Home improvement loans are loans specifically designed by loans companies... Read More
Interest rates have been at their lowest levels in over... Read More
Trying to find good UK secured homeowner loans might seem... Read More
For a fast cash advance loan, no fax payday loans... Read More
Secured loans are one of the most popular personal loans... Read More
If you're just beginning to look at online loans, you... Read More
Many people may wonder about common loan terms? words and... Read More
If you are in a hurry for a payday loan,... Read More
How do you finance a growing practice? It is impossible... Read More
If you want to apply for a loan online, you... Read More
As tuition rates at many colleges continues to rise, the... Read More
In his 1968 seminal novel, 2001: A Space Odyssey, Arthur... Read More
Education never ends ? it is not said without reason.... Read More
For those in the market for a loan UK ,... Read More
A Commercial Lender is Not a Commercial Lender When it... Read More
Isn't it the trillionth article on unsecured loans? All are... Read More
If you have bad credit and you are trying to... Read More
If you have poor credit or a recent bankruptcy, you... Read More
Instant payday loans are financial loans that are available for... Read More
Have you been trying to find out what bad credit... Read More
Loan |