 |
 |
How do personal loans work?
Before you decide to enter into a secured personal loan
or unsecured personal loan agreement you should make sure
that you know exactly what you are doing, we have knowledgeable
and friendly loan advisers ready to answer any questions
that you may have 7 days a week. Unlike other specialist
loan companies we are also qualified independent financial
advisers. Our loan advisers want you to have the best product
to suit your needs.
Please read the following loan information to gain a better
overview of how loans work.
The personal loan agreement
When you enter into a Secured personal loan or Unsecured
personal loan agreement – you are signing a contract
to make the repayments, by the specified date every month
for the length of the personal loan agreement. Any deviation
from this agreement may result in monetary penalties. For
example, some loan lenders apply an early settlement charge
(also known as a redemption penalty) if you repay either
the secured personal loan or unsecured personal loan in
full before the agreed end date. This can be up to 2 months
interest. If you think you will be able to pay off the loan
before the end of the term then your best bet will be to
arrange a secured loan or unsecured loan with no early settlement
costs, however the APR may be slightly higher.
Flexibility within the personal loan agreement
If you would like some flexibility in your personal loan
agreement, make sure you arrange this before you sign on
the dotted line. You may be able to arrange occasional over-payments
and lump-sum payments, both of which allow you to clear
the debt over a shorter time period than first agreed. If
your secured personal loan or unsecured personal loan is
a truly flexible product then you may also be able to use
the fund as a bank account, withdrawing funds from the account
on a rolling basis, providing you stay within your credit
limit. Lenders also offer repayment holidays, allowing you
to defer your monthly cheap loan repayments either at the
start of the loan (known as 'deferred repayment') or at
an agreed point during the term.
Interest on the personal loan
You are charged interest on the amount you have borrowed
with the personal loan – it is a percentage of the
borrowed amount which accumulates over the period of the
agreement. Interest rates on loans vary from 6% up to 20%.
The interest rate will be included in the APR. This stands
for Annual Percentage Rate, and includes the administration
cost of setting up the mortgage, any discount periods, how
often interest is calculated and also calculates what the
average rate of interest will be over the life of the loan.
To comply with the consumer credit act all lenders must
ensure that the borrower is informed of the APR (the annual
percentage rate on the loan).
Fixed or variable interest personal Loans
The APR can be a fixed or variable charge. A fixed APR has
the benefit of added security since the rate will not change,
a variable APR does not have this security but could reduce
the cost of your total payments if interest rates go down.
Quick links
| |
|
About the UK
The UK is situated off the north-western coast of continental
Europe, and has a land border with the Republic of Ireland,
but is otherwise surrounded by the North Sea, the English
Channel, the Celtic Sea, the Irish Sea, and the Atlantic Ocean.
The UK has four constituent parts, three of which —
the ancient nations of England, Wales and Scotland —
are located on the island of Great Britain. The fourth part
is Northern Ireland, which is located on the island of Ireland.
The border between Northern Ireland and the Republic of Ireland
forms the United Kingdom's principal international land border,
although there is also a nominal frontier with France in the
middle of the Channel Tunnel. The UK also has overseas territories
throughout the world, and relationships with several Crown
dependencies.
we Limited works in conjunction with Great British
Finance and a large panel of leading lenders, banks and building
societies. We are able to survey the whole market in order
to find the most suitable product for you. We shall only ever
recommend a course of action if we believe it to be suitable
for you. intermediary loans
|
Best
personal loans UK
Mortgage Defaults or Arrears 
