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Loans Guide by John
Mussi
Many people are confused by the different types of
loans available. Here is a helpful summary of the most common loans
available today.
Bad Credit Personal Loan
A Bad Credit Personal Loan is a loan designed for the many people with a
bad credit rating. However created, your past record of County Court
Judgements, mortgage or other loan arrears can live on to deny you
access to finance that other people regard as normal. If you are a home
owner with equity in your property, a Bad Credit Personal Loan can bring
that normality back to your life. Secured on your home, a Bad Credit
Personal Loan can give you the freedom, for example, to do the home
improvements or buy the new car you really wanted. With a Bad Credit
Personal Loan you can borrow from £5,000 to £75,000 and up to 125% of
your property value in some cases.
Bridging Loan
A bridging loan as the name implies is a loan used to “bridge” the
financial gap between monies required for your new property completion
prior to your existing property having been sold. Bridging loans are
short term loans arranged when you need to purchase a house but are
unable to arrange the mortgage for some reason, such as there is a delay
in selling your existing property. The beauty of bridging loans is that
a bridging loan can be used to cover the financial gap when buying one
property before the existing one is sold A bridging loan can also be
used to raise capital pending the sale of a property. Bridging loans can
be arranged for any sum between £25000 to a few million pounds and can
be borrowed for periods from a week to up to six months. A bridging loan
is similar to a mortgage where the amount borrowed is secured on your
home but the advantage of a mortgage is that it attracts a much lower
interest rate. While bridging loans are convenient the interest rates
can be very high.
Business Loan
A business loan is designed for a wide range of small, medium and
start-up business needs including the purchase, refinance, expansion of
a business, development loans or any type of commercial investment.
Business loans are generally available from £50,000 to £1,000,000 at
highly competitive interest rates from leading commercial loan lenders.
A business loan can be secured by all types of UK business property,
commercial and residential properties. Business Loans can offer up to
79% LTV (Loan to Valuation) with variable rates, depending on status and
length of term. Business loans are normally offered on Freehold and long
Leasehold properties with Bricks and Mortar valuations required. Legal
and valuation fees are payable by the client.
Car Loan
The main types of car loans available are Hire Purchase and
Manufacturer’s schemes. Hire purchase car finance is arranged by car
dealerships, and effectively means that you are hiring the car from the
dealer until the final payment on the loan has been paid, when ownership
of the vehicle is transferred to you. A Manufacturers' scheme is a type
of loan that is put together and advertised by the car manufacturer and
can be arranged directly with them or through a local car dealership.
You will not be the owner of the vehicle until you have repaid the loan
in full, and the car will be repossessed if you default on repayments.
Cash Loan
Cash Loans also known as Payday Loans are arranged for people in
employment who find themselves in a situation where they are short of
immediate funds. A Cash Loan can assist you in this situation with short
term loans of between £80 and £400. Loans are repayable on your next
payday, although it is possible to renew your loan until subsequent
paydays. To apply for a Cash Loan you must be in employment and have a
bank account with a cheque book. A poor credit rating or debt history is
initially not a problem.
Debt Consolidation Loan
Debt consolidation loans can give you a fresh start, allowing you to
consolidate all of your loans into one - giving you one easy to manage
payment, and in most cases, at a lower rate of interest. Secured on your
home debt consolidation loans can sweep away the pile of repayments to
your credit and store cards, HP, loans and replace them with one, low
cost, monthly payment – one calculated to be well within your means.
With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and
up to 125% of your property value in some cases. It can reduce BOTH your
interest costs AND your monthly repayments, putting you back in control
of your life.
Home Loan
A Home Loan is a loan secured on your home. You can unlock the value
tied up in your property with a secured Home loan. The loan can be used
for any purpose, and is available to anyone who owns their home. Home
loans can be used for any purpose such as, home improvements, new car,
luxury holiday, pay of store card or credit card debt and debt
consolidation. With a Home Loan you can borrow from £5,000 to £75,000.
Home Improvement Loan
A Home Improvement Loan is a low interest loan secured on your property.
With a Home Improvement Loan you can borrow from £5,000 to £75,000 with
low monthly repayments. The loan can be repaid over any term between 5
and 25 years, depending on your available income and the amount of
equity in the property that is to provide the security for the loan. A
Home Improvement Loan can help you with a new kitchen, bathroom,
extension, loft conversion, conservatory, landscaping your garden or new
furniture. You can even use it on non-house expenditure like a new car
or repaying credit card or other debts.
Home Owner Loan
A Home Owner Loan is a loan secured on your home. You can unlock the
value tied up in your property with a secured Home Owner loan. The loan
can be used for any purpose, and is available to anyone who owns their
home. Home owner loans can be used for any purpose such as, home
improvements, new car, luxury holiday, pay of store card or credit card
debt and debt consolidation. With a Home Owner Loan you can borrow from
£5,000 to £75,000.
Payday Loan
Payday Loans also known as Cash Loans are arranged for people in
employment who find themselves in a situation where they are short of
immediate funds. A Payday Loan can assist you in this situation with
short term loans of between £80 and £400. Loans are repayable on your
next payday, although it is possible to renew your loan until subsequent
paydays. To apply for a loan you must be in employment and have a bank
account with a cheque book. A poor credit rating or debt history is
initially not a problem.
Personal Loan
There are two categories of personal loans: secured personal loans and
unsecured personal loans – See individual titles below. Homeowners can
apply for a Secured personal loan (using their property as security),
whereas tenants only have the option of an unsecured personal loan.
Re-mortgage Loan
A re-mortgage is changing your mortgage without moving your home.
Re-mortgaging is the process of switching your mortgage to another
lender that is offering a better deal than your current lender thereby
saving money. A re-mortgage can also be used to raise additional
finances by releasing equity in your property. You can borrow from
£25,000 up to £500,000. Rates are variable, depending on status.
Secured Loan
A secured loan is simply a loan that uses your home as security against
the loan. Secured loans are suitable for when you are trying to raise a
large amount; are having difficulty getting an unsecured loan; or, have
a poor credit history. Lenders can be more flexible when it comes to
secured loans, making a secured loan possible when you may have been
turned down for an unsecured loan. Secured 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. 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.
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. You can borrow any amount from
£5,000 to £75,000 and repay it over any period from 5 to 25 years.
Student Loan
A student loan is way of borrowing money to help with the cost of
your higher education. Applications are made through your Local
Education Authority
A student loan is a way of receiving money to help with your living
costs when you're in higher education. You start paying back the loan
once you have finished studying, provided your income has reached a
certain level.
Tenant Loan
A tenant loan is an unsecured loan granted to those that do not own
their own property. A tenant loan is always unsecured because in most
cases, if you are renting your accommodation, you do not have an asset
against which you can secure your loan. Tenants sometimes find that some
loan companies will only lend money to homeowners. If you are a tenant
you need to look for a company, bank or building society willing to give
you an unsecured loan.
Unsecured Loan
An unsecured 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 loans to
£25,000. The repayment period will range from anywhere between six
months and ten years. Unsecured loans are offered by traditional
financial institutions like building societies and banks but also
recently by the larger supermarkets chains. An unsecured loan can be
used for almost anything - a luxury holiday, a new car, a wedding, or
home improvements. An unsecured loan is good for people who are not
homeowners and cannot obtain a secured loan for example; a tenant living
in rented accommodation.
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. The repayment period will range
from anywhere between six months and ten years. 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.
You may freely reprint this article provided the author's biography
remains intact:
About the Author
John Mussi is the founder of Direct Online Loans
who help UK homeowners find the best available online loans via the
www.directonlineloans.co.uk website.
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