Many people get confused when they hear about the different types of loans available. Here is a helpful loans guide of the most common loans available today. One of the main mistakes that most people make when looking for a loan is to only approach one lender. A loan is such a serious obligation, that you must shop around.
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. With a Bad Credit Personal Loan you can borrow up to 125% of your property value in some cases.
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. Bridging loans are short-term loans arranged when you need to purchase a house but are can’t arrange the mortgage for some reason, such as there is a delay in selling your current home.
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. Business loans are generally available at really competitive interest rates from leading commercial loan lenders. A business loan can be secured by all types of business property, commercial and residential properties.
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; the loan is been paid and ownership of the vehicle is transferred to you. A Manufacturers’ scheme can be arranged directly with them or through a local car dealership.
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. A Cash Loan can assist you in this situation with short term loans.
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. It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of the life you want to lead.
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. The loan can be used for any purpose, and is available to anyone who owns their home.
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.
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. The loan can be used for any purpose, and is available to anyone who owns their home; homeowner 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.
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.
Remortgage Loan : A remortgage is changing your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender. This process is done to help you save money.
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.
The first step in getting a loan is determining what type of loan you need. Taking out a loan is a big responsibility, so please do make sure you do plenty of research. One other thing to note is co-signing a loan takes on the same importance as if the loan is for you.