Tag Archive: borrowers

Best Secured Loans Available in the UK

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Whether you’re looking to borrow £500 or £200,000, getting a secured homeowner’s loan is something you can consider. As long as you have a property to secure the loan against, you can get approved fast and you can immediately use the money for a wide range of personal needs. And if you’re ready to get approved now, we’ve rounded up the best secured loan providers available in the UK today:

Paragon Bank

At 4.54% headline rate, you can borrow between £40,000 and £125,000 with Paragon Bank. The loan can be repaid minimum of ten years and maximum of 25 years. If you borrow £80,000 at £5.2% variable representative APR over a 20-year period, you’ll repay a total of £127,999.62. Or that’s about £533.33 per month for the next 20 years.

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Precise Mortgages

With Precise Mortgages, the headline rate is set at 4.55. The lender offers loan amounts from £30,001 to £200,000 at repayment terms starting from 3 years up to 30 years. If you borrow £115,000 at variable representative APR of 5.1% over a 20-year term, your monthly repayment fee will be 757.94 per month. The grand total you’ll pay for at the end of the loan term will be a whopping £181,906.22.

Prestige

A bit more expensive than the other options but still relatively cheap compared with other types of personal loans, Prestige offers loans from £10,000 up to £200,000. The headline rate is set at 4.68% while the repayment period starts from 3 years up to 25 years. If you plan to borrow £105,000 over a 20-year period for a major investment and the variable representative APR is 5.3%, you will end up paying £703.44 per month or a total of £168,824.52 by the end of the 20-year loan term.

Nemo Personal Finance

Nemo Personal Finance is another provider worth looking at if you’re looking to borrow between £15,000 and £200,000. Repayment period stars from 3 years minimum and 25 years maximum while the hidden rate is set at 4.92%. If you’re looking to borrow a sum of £20,000 and the variable representative APR is set at 7, expect to pay £230.13 per month or a total of £27,615.77 if the term is ten years.

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United Trust Bank

Also offer cheaper secured loans in the UK is United Trust Bank at a hidden rate of 4.95%. The providers offer loans from £10,000 up to £75,000 maximum with repayment options starting from 3 years minimum and 25 years maximum. To better illustrate the loan’s cost, let’s say you want to borrow £40,000 over a 15-year loan term. If the variable representative APR is set at 6.8% and the variable interest rate is 4.5%, expect for your monthly dues to be somewhere at £350.71. The grand total you’ll pay for by the end of the term is £63,127.04.

 

 

 

 

Which is better: Secured or Unsecured Loans?

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If you’re looking to apply for a personal loan, there are two major categories to choose from. Most if not all loan types belong into these two categories. Each category obviously has its set of advantages and disadvantages. In most cases, you might find yourself asking which of the two categories is better for your needs. This quick guide was created exactly to help you choose between secured and unsecured loan types.

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What are secured loans?

Secured loans, as you can glean, from its name are loans that require an asset, security or collateral. In other words, you’ll only be qualified to apply for the loan if you have a car, home and other acceptable asset to secure the loan with. Examples of secured loans are mortgage, home equity line of credit, auto loan and logbook loan among other loan types.

With a security involved, it means that you can borrow a larger amount with secured loans. This category therefore is best for borrowers who are looking to borrow larger loan amounts for major expenses and investments. The loan offer will usually depend on the value of your asset or security and on your steady income.

On the downside, secured loans are also quite risky. Though the interest rates may be lower than unsecured loans, the risks are higher for borrowers because of the risks of asset repossession. If the borrower is unable to repay the loan, the lender can recover your asset as agreed upon through the loan terms. The lender can also sell off the asset to pay off your outstanding loan balance.

What are unsecured loans?

Unsecured loans, on one hand, are loan types that require no asset or security. It is exactly the opposite of secured loans. With no security your lender can repossess in case of nonpayment, lenders can only lend borrowers smaller loan amounts often at higher interest rates than secured loans. Examples of unsecured loan types include payday loans, credit cards, personal loans of credit and signature loans among other loan types.

With unsecured loans, the basis for approval often depends on your financial capability to repay the loan. The most important requirement you’ll have to prepare is your proof of income. So long as you have a steady stream income to prove of your financial capability, loan approval is often fast and easy.

With no security needed, unsecured loans are also perfect for borrowers with bad credit problems. Lenders do not run credit checks on applicants hence the fast approval. You’ll really just need to meet the eligibility criteria and you’re ready to get approved. Just remember that the loan offers are smaller so unsecured loans are only ideal for pressing financial emergencies such as rent, car repair, overdue bills, etc.

Which is better?

Between the two loan type categories, the question shouldn’t be which category is better but rather which one is right for you. As you can see, both secured and unsecured loan types have pros and cons to consider. Like with any important financial decisions, the trick is to opt for a loan type that suits both your needs and financial capability.

As a simple guide, keep in mind that secured loans are ideal if you have a security you can use to avail a larger loan amount. Interest rate is usually lower but the risks are higher in terms of repossession. Conversely, unsecured loans are ideal if you need a quick fix solution to unexpected financial emergencies. Interest rates may be higher but approval is always quick and easy.