What Loan Products Are Available Today?
Ever since the introduction of the internet, the loan market has changed dramatically. Nowadays, there is a loan product available to suit almost any financial situation.
Secured Loans.
Secured loan lenders will be able to offer anything from £2000 to £50,000 (with some offering up to £100,000) to homeowners.
Secured Loans.
Secured loan lenders will be able to offer anything from £2000 to £50,000 (with some offering up to £100,000) to homeowners.
The reason secured loan lenders require the applicant to be a homeowner is because they will secure the loan against the borrower's property. This means that if the borrower was unable to pay and the loan falls into default; the lender has the right to repossess or put a charge on the property.
Personal Loans
Sometimes referred to as unsecured loans; these loans work on the basis that the lender has not got the security of an asset such as a property to fall back on. The regular personal loan provider will offer between £1,000 and £15,000 depending on the applicant's credit history.
Sometimes referred to as unsecured loans; these loans work on the basis that the lender has not got the security of an asset such as a property to fall back on. The regular personal loan provider will offer between £1,000 and £15,000 depending on the applicant's credit history.
Peer-to-Peer Lending
Often referred to as social lending, this is a relatively modern approach to finance. The investor then makes a margin depending on the interest rate the borrower is being charged. The "lender" in this situation is more like a middleman, taking a percentage of the interest charged.
Often referred to as social lending, this is a relatively modern approach to finance. The investor then makes a margin depending on the interest rate the borrower is being charged. The "lender" in this situation is more like a middleman, taking a percentage of the interest charged.
Guarantor Loans
A guarantor loan is a personal (or unsecured) loan that is backed by a friend or family member with good credit. This works because the lender has a "plan B" and if the applicant is unable to pay they have the right to ask the guarantor for the payment instead. The guarantor is legally obliged to make the payment if the applicant can't.
A guarantor loan is a personal (or unsecured) loan that is backed by a friend or family member with good credit. This works because the lender has a "plan B" and if the applicant is unable to pay they have the right to ask the guarantor for the payment instead. The guarantor is legally obliged to make the payment if the applicant can't.
Logbook Loans
Logbook loans are secured against a car. They work in a similar way to secured loans. The amount available to the borrower is relative to the value of the car the loan is being secured on. If the loan goes unpaid the lender will repossess the car.
Logbook loans are secured against a car. They work in a similar way to secured loans. The amount available to the borrower is relative to the value of the car the loan is being secured on. If the loan goes unpaid the lender will repossess the car.
Payday Loans
Payday loans are short term loans, usually lasting no longer than a month. An example of when you would take out a payday loan would be if you are struggling to pay an important bill mid-month, perhaps Council Tax, you know you could pay it after payday but they are demanding the payment now.
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Payday loans are short term loans, usually lasting no longer than a month. An example of when you would take out a payday loan would be if you are struggling to pay an important bill mid-month, perhaps Council Tax, you know you could pay it after payday but they are demanding the payment now.
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