Personal Loans Uk

Personal Loans Uk



Personal Loans Uk
The UK is​ a​ nation of​ debtors .​
It is​ estimated that 15 million people in​ the​ UK are struggling with personal debt,​ while in​ 2004 some 46,​000 people filed for bankruptcy with personal debts running at​ an​ average of​ more than £50,​000 .​
Despite these figures though,​ we continue to​ borrow on​ loans and finance agreements,​ mainly because it​ is​ still very cheap to​ do so .​
Competitive personal loans rates
With the​ Internet making personal loans more accessible it​ is​ now easier than ever to​ apply for a​ personal loan .​
Just a​ quick glance online reveals that adverts for personal loans are everywhere .​
In fact,​ the​ competition between lenders is​ so fierce that many personal loans now come with added benefits such as​ discounted interest rates,​ air miles and even free insurance products to​ entice customers to​ choose a​ particular loan.
Loans companies too are relaxing their lending criteria,​ opening up personal loans to​ people who they may not have been willing to​ consider some five or​ ten years ago .​
Adding to​ the​ incentives for the​ borrower to​ apply for loans is​ the​ fact that the​ base interest rate has maintained a​ relatively steady course over the​ past few years,​ and looks set not to​ increase dramatically over the​ next year or​ so either .​
All in​ all,​ this combination of​ factors has fuelled the​ personal loans market,​ pushing the​ nation's total debt past the​ £1 trillion mark for the​ first time in​ history.
Choices in​ the​ personal loans market
When taking out a​ personal loan,​ borrowers are confronted with a​ plethora of​ offers from lenders .​
These personal loan offers are essentially divided into two categories - unsecured loans and secured loans.
Unsecured personal loan products are available to​ homeowners,​ tenants,​ and people living with their parents .​
The borrower can normally apply for loans of​ between £1000 and £25000 without the​ need to​ commit to​ any collateral on​ the​ loan .​
Fixed interest rates from as​ low as​ 5.7% are currently available on​ some loans,​ however the​ rate is​ normally subject to​ a​ high credit score .​
For people with a​ less than ideal credit score,​ a​ higher APR than advertised may be offered on​ the​ personal loan .​
Secured personal loan products on​ the​ other hand are more in​ the​ domain of​ the​ homeowner .​
This is​ because collateral is​ required against the​ personal loan,​ so should the​ borrower default on​ the​ personal loan repayments then the​ lender can repossess the​ borrower's home to​ recoup their losses .​
Secured loans of​ up to​ £100,​000 are available from many lenders,​ the​ limit on​ how much can be borrowed being dictated by the​ equity in​ the​ homeowner's property .​
Overall,​ secured loans have lower interest rates than unsecured loans.
Whichever type of​ personal loan you​ decide upon,​ you​ must be confident in​ your ability to​ pay back the​ loan .​
If you​ are unable to​ meet your personal loan repayments then you​ will attract a​ bad credit rating making it​ very expensive for you​ to​ obtain credit in​ the​ future .​
If you​ are a​ homeowner,​ you​ could also lose your home.




You Might Also Like:




No comments:

Powered by Blogger.