Generally, people tend to get confused when they hear about the different types of loans and financing solutions available. Here is a concise and helpful glossary of the most common kinds of loans available today.
Bad Credit Personal Loan : A Bad Credit Personal Loan is a loan made for people with a bad credit rating. However created, your past record of County Court Judgments, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal.
Bridging Loan : A bridging loan is a kind of loan used to “bridge” the financial gap between monies required for your new property completion prior to your existing property having been sold.
Business Loan : A business loan is designed for a wide range of small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment.
Car Loan : The basic types of car loans available are Hire Purchase and Manufacturer’s schemes. Hire purchase car finance is arranged by a car dealership, and in essence 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.
Cash Loan : Cash Loans are also known as Payday Loans, and these loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds.
Debt Consolidation Loan : Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one simple loan, which will give you just one easy-to-manage payment, and in most cases, at a lower rate of interest.
Student Loan : A student loan is way of borrowing money to help with the cost of your education. Applications are made through your Local Education Authority or the government.
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.
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. Because you not securing the money you are borrowing, lenders tend to limit the value of unsecured loans.
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. 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, and many people choose to do so with this kind of loan.
Home Improvement Loan : A Home Improvement Loan is a low interest loan secured on your property. With a Home Improvement Loan you can borrow money 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. You need to talk to your lender about that.
Home Owner Loan : A Home Owner Loan is a loan secured on your home that you own. You can unlock the value tied up in your property with a secured Home Owner loan.
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.
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.
Secured Loan : A Secured Loan is a loan that uses your home as security against the loan.
Secured Personal Loan : A Secured Personal Loan is 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.