Loans Direct UK:
Choosing the right type of loan in the United Kingdom can make your borrowing lower risk, easier to manage, and much cheaper. Every loan is made for specific needs, and being more familiar with each of them can help you select the one that best suits you.
This short guide from loans Direct explains some of the common types of loans in the UK available to help you come up with a more educated decision.
Two Primary Types of UK Loans
There are two primary types of loans that you can choose from in the United Kingdom:
Secured loans use your belongings as a form of security on the loan you will get, typically a property, vehicle or any other similar. It allows the lender to sell the security directly if you cannot really pay for the loan. Secured loans are often much bigger compared to other types of loans which are why lenders required such loans to be tied to any type of asset like your house. A mortgage is a good example of secured loan since the lender has your home’s security in the event that you cannot pay back the loan.
Unsecured loans don’t use your possessions as part of the application. You only borrow cash from a lender then pay this back over an agreed term. Unsecured loans are often meant for smaller amounts. These are not tied to any direct asset although your credit ration will often be considered and may also determine the specific amount that you can borrow. Unsecured personal loans are specifically helpful if you like to borrow a substantial amount for family holiday or home renovation over a certain period of time, and are also a more cost effective alternative to an overdraft or credit card. It is also likely that the interest rate will vary from one provider to another. If you will make a choice between these two, an unsecured loan might be more preferable since it will not put your possessions directly at risk in case something suddenly goes wrong.
Specific Types of Unsecured Loans
The cash you will get from unsecured loans can be used for pretty much anything that you choose, and the common types are the following:
Specific Types of Secured Loans
As mentioned earlier, it is more likely for secured loans to come with certain restrictions as to where you will be using the money, for instance, there are bridging loans that should only be used for buying property. Common types of secured loans include the following:
The credit union loans are a self-help cooperative in which the members direct combine their savings to offer credit to one another at a competitive and low-interest rate. To become a member, you have to share a common bond with the rest of the members like working or living in the same place.
Peer to Peer Lending
P2P or peer to peer lending brings the savers and borrowers together with competitive interest rates for both parties. Nevertheless, P2P websites aren’t covered by the government that’s backed FSCS or Financial Services Compensation Scheme that protects the bank savers about £75,000. It’s the fee that’ll be involved based on the amount you have borrowed.
Payday Loans direct lending
These kinds of loans let you borrow small amounts over a short period of time, typically until your next payday. The process of application might be faster than for some loans, yet such tend to have high-interest rates, which mean you might end up paying back interest, which is basically multiple times the amount of original borrowed amount.
Logbook Loans direct lending
The logbook loans are the loans that are secured to your vehicle so lenders own your car until you have paid them the loan you applied for. You may keep on using the vehicle as long as you’re repaying the loan. Nevertheless, logbook loans are risky and costly and you must avoid them if you could. These loans are available over the internet and on high street. You may normally borrow from £500-£50000, depending on the amount of your car. Even if several firms would only lend up to half of the value of the car. Once you take out the logbook loans, you will be typically asked to hand over the logbook of your vehicle or the registration document of the vehicle. Such are the documents that prove you’re the registered vehicle’s keeper. However, even if you don’t, you are still handing over the car’s ownership until your loan is repaid.
How Long Should You Pay Back Your Loan?
When it comes to how long you have to pay it back, it also depends on some things. Majority of unsecured loans provide terms between 1 and 7 years, yet several loans offer longer and shorter repayment periods. For those who want to pay it back for a long time, there are secured loans that offer up to ten years. If you’re planning to pay your loan back as soon as possible, there several peer to peer loans that last for 6 months and some have no early repayment fees. If you have to borrow a big amount of money, bridging loans are made for short-term borrowing.
Other Things to Think about
Aside from determining the amount to borrow and your preferred repayment period, think of your credit record too. If your credit is poor, the kinds of loans you may get might be more limited. Nevertheless, several kinds of loans are tailored specifically to the borrowers with bad credit and these are logbook loans, bad credit loans, and guarantor loans.
Loans Direct offering such kinds of loans and seriously consider your application, yet this might mean a little higher interest rate. If you have a good credit record, you may choose from any of the types of loans available and you can always qualify for some cheap rates and bigger loan amount.
No guarantor can I get a loan?:
Yes, you can get no guarantor loans.
Do your network of loan brokers provide loans for people with bad credit?:
Yes, bad credit is considered if you have steady income source to repay loan.
Do your network of loan brokers charge any advance fee to getting this loan?
No, Our network of loan brokers never ask any fee or admin charges.
I am non homeowner, am I eligible?:
Yes, Our network of loan brokers provide unsecured personal loans to tenants or non homeowner clients.
Can i choose repayment period?:
Yes, loans are available with repayment periods of 1-25 years for unsecured loans, and 3-25 years for secured loans.
I am 17 years, Can i get loan?:
No, Minimum age criteria is 18 years and you must be UK resident to get a loan.
How much can I borrow?:
With an Unsecured Loan, you can borrow between £500 and £25,000 subject to your circumstances. And with a secured loans you can get up to £1,000,000.
lloans direct is not related to the loans company Loans Direct we are a separate entity completely, we are L Loans Direct.
Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Financial Details: Rates from 4.5% APRC to 65.2% APRC are available – the highest rate is for customers with severe credit problems. Loans available from 1-25 years.
TYPICAL 10.9% APRC variable
Representative example: a representative example of the total cost of the loan, including all applicable fees – Typical loan size of £25,000 over 120 months = £275.82 pm, 4.35% Variable APR – 6% (including £1800 in fees) total repayable £33,098
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. Loans subject to status and secured on residential property by way of a second charge. Consolidating debts may increase the term and total amount payable.
Calls may be recorded for training purposes. The third party lender or broker may charge a fee of 0% up to 15% on your loan.
Loans subject to status. Over 18s only. The minimum loan amount may apply.
Lloans direct. co. uk is a lead generator, and receive a commission for introducing customers to FCA authorised and regulated lenders and brokers. No advice is given or implied on this website. Our service is free and you are under no obligation to accept any quotes you receive.
Lloans direct. co. uk is a trading name of Eaffy Solutions. Registered Address: 120 High Road, East Finchley, London, N2 9ED