Loan Loan

Loans, loans, we usually need them to enable us to make major capital purchases, which are very difficult to fund out of income by any other means.

Mortgages

The biggest single purchase most of us make is to buy a house, imagine how long you would have to save up for if mortgages weren't available? We don't have long enough! It is getting difficult to save enough for the deposit nowadays.

Apart from that one major purchase, there are many things we possibly could save for, but find it much more convenient to fund the purchase with a loan, so we can have the enjoyment of the car, or whatever, while we are paying for it.

Secured Loans

As well as mortgages, which are used for the purchase of a home, there are other loans which we can take out using our property as collateral, or security, for the loan. These, not surprisingly, are called secured loans, and they take advantage of the unused equity in our property, to obtain better terms or availability for additional finance.

What this means is if our mortgage is not for the full current value of our property, we may be able to use some of this value when taking out a loan. This often means we get the benefit of a lower interest rate on the additional borrowing, as the risk to the lender is reduced.

So, if you have already paid off part of your mortgage, or if the value of your house has risen since you took out the mortgage, you may be elligible for a secured loan.

A secured loan is often the chosen method of securing finance for home improvements, funding other major purchases, or in debt consolidation.

Debt Consolidation

Debt consolidation is the refinancing of existing debt, perhaps on credit cards or personal loans with higher interest rates. The intention is to consolidate all the outstanding debt by taking one loan for the total amount.

If this can be achieved with a lower interest rate than before, which is quite possible where credit card interest is concerned, it can result in quite a saving. This money can be used to pay off all the credit cards and other debt, with one affordable monthly payment to make for the new loan going forward.

Unsecured Loans

Where no equity in property is available as security for a loan, it may be possible to fund major purchases, or consolidate existing debt using an unsecured loan.

This is a personal loan taken out without the security of property, so interest rates are likely to be higher, as the lender does not have the security of the property.

Logbook Loans

Logbook loans have been available for quite a few years now and have become very popular for raising short term cash for any purpose. They are available to car owners who have little or no existing finance on their vehicle.

Usually no credit checks are required and they may be available when other forms of credit have been refused.

Payday Loans

Payday loans are available for very short term emergency funding, typically to cover urgent needs and tide you over until payday.

You will get an instant decision and will usually have your cash the same day.