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When looking for a loan there are various options which you can pursue, the loan type you decide to go for is dependant upon various factors. Below we have compiled a quick guide to the most common loans available in the UK. These are dependant upon the 4 factors below:
- How much you are looking to borrow.
- The length over which you are looking for the loan to be repaid.
- Your residential status.
- Your previous credit history.
Personal Loans
The most common type of loans is personal loans (also known as “Un-secured Loans”). This simply means that the lender has no security against the loan incase you are unable to repay it.
It can range from £500 up to £25,000 and can be for most purposes apart from business use. Within this site we research all the lenders in the personal loan sector in the UK so you can get a good idea at the cheapest and personal loan products that may suit your circumstances.
Click here for detailed personal loans guide
Secured Loans
Secured loans as they are commonly referred to or a homeowner loan is for people who own their own home and have a mortgage. These loans range from £5,000 and can go. A secured loan offers great flexibility and rates for people with good credit are very competitive even sometimes better than personal loans. With a secured loan the term can also be made longer which means that monthly payments can be kept lower as well.
Click here for detailed secured loans guide
Bad Credit Loans
For people who have had previous problems with their credit lenders have specialist products in both the personal loan and secured loan markets. Majority of time these will be because of either missing payments on credit you may have obtained, defaults, ccj’s or going into an IVA.
Click here for detailed bad credit guide
Car Loans
These types of loans are used specifically to fund the purchase of a vehicle, the most common way is by taking out car finance to directly fund the purchase of a car. These types of loans are attached to the vehicle which means it is a registered debt against the vehicle you have decided to purchase. When you go to sell the car if the loan carries over to the new owner so when buying a car it is recommended always to do a history check to make sure all finance has been cleared prior to buying it.
Click here for detailed car loans guide
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