Unsecured Loans - page 2
Unsecured loans are available to both homeowners and tenants
Under the Consumer Credit Act 1974, there is protection for persons borrowing up to £25,000, which gives them certain rights. They are entitled to written information regarding the agreement which includes the APR and the total amount which will be charges for the loan. They should be given their own copy of this agreement. Also, under the terms of the Act, a customer should be given a cooling-off period, which is normally about two weeks, or the opportunity to cancel the loan.
It's possible to borrow up to around £100,000 on a secured loan and the term of the loan could be up to 15 years. If you're borrowing a large amount, it would be worth considering extending your mortgage and it's worth checking on this option.
Payment Protection Insurance (PPI) is an option and not an obligation when taking out a loan. Think carefully before choosing this option and bear in mind that, whilst it may be a way of your lender earning a good slice of commission, you won't necessarily get the best deal by using their services - in fact by getting on to an on-line independent broker you'll find all the help and information you need on both loans and PPI, at the best possible prices. A broker will search their data-base to find the right product for you.
Not everyone will benefit from PPI - which pays out if you are unemployed, sick or the victim of an accident. Self-employed people or those working on a sub-contract basis would be excluded and it's essential that you compare the terms and costs, as there are wide variations in these. The better policies pay the benefit from the first day of illness or unemployment, although commonly you don't start to draw the money until the end of the first 28 days, when it will be back-paid to day one. Some policies don't pay anything for the first 28 days.
Don't go down the loan path with your eyes closed. Check everything out. Know what's available and be aware of the full costs. Find an on-line broker and you're almost there.
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