Applying for a Loan
Sourcing that Loan
Summary: If you don't want to risk the security of your home when applying for a loan, you'll need to go for an unsecured personal loan. This will be understandably more expensive than a secured loan though, so watch those sums!
If you need to borrow money but you're not happy about risking your home by borrowing against it, what you should be looking for is an unsecured personal loan. Although an unsecured personal loan is a serious commitment and you will be required to sign a contract promising repayment of the money, you will not be putting your home at risk. However, if you fall behind with your payments you will risk getting a bad credit record which you may regret when it comes to future finance of all types.
Generally most people borrow between £500 and £25,000, and repayments are made each month for whatever period is agreed. It could be as short as six months or up to 15 years. Obviously, there is a greater degree of risk for the lender, without the back-up of some security, and they are understandably more careful about the amount of the loan and the circumstances of the borrower.
Loans News
insertrssUsually personal loans are fixed and repayments are a set, agreed amount over the agreed term of the loan. There are some variable rate loans, where the interest rate can fluctuate, depending on the base rate at the time.
When it comes to finding a loan, there's no shortage of lenders and terms and rates can vary tremendously. By seeking out the best deal available you can save a lot of money in interest and it's worth taking some time to look at the full picture. If you need to borrow a lump sum, think about how much you can afford to pay each month and consider how long it's going to take to repay the loan at this rate. Watch out for early repayment fees - if you find you can actually pay back the money more quickly than you first thought, you don't want to pay a penalty for doing so.
