Hot Topics

What kind of loan should I get?
Which loan you choose depends entirely on what you need it for. There are many different kinds of loans, depending on where you buy them from.
What is a Holiday Loan?
A holiday loan is a loan designed to give you the means to pay for a holiday. This is commonly used for ‘holidays of a lifetime' like honeymoons, anniversaries and holidays to exotic locations.
What is the maximum value of the secured loans I can have in relation to the value of my property (LTV ratio)?
The industry average for the LTV ratio (Loan to Value Ratio) is 75%. This means that if your property is valued at £100,000 – you will be able to borrow £75,000 against it. It may be possible to get more than that – for example 85% or 90% - however you will need an excellent credit history and must in general be considered a ‘no risk’ customer by the loan provider.
What happens if I want to borrow more?
To borrow more you have the option of either taking out a new loan independent of your other loan(s), or arranging with your loan provider to add onto your existing loan.
I live at home with my parents, can I still apply for a loan?
If you live at home you are still eligible for a tenant loan – this is basically an unsecured loan in which you have no property to provide as security against the debt.

Can I have a fixed rate loan?

It is entirely up to you if you want a fixed rate or a variable rate loan - however there are some limits to this.

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On an unsecured loan you may only have the option on a fixed rate loan, especially if it is a relatively small loan over a short period of time. Many insurers offer this option because it is easy and involves a lot less administration - the monthly repayments are the same for the duration of the loan and everyone knows where they stand. It’s a ‘no-hassle’ agreement for everyone concerned.

If you are taking out a loan over a long term, for example over 25 years, then it is up to you to decide what you think is the best for your money. Interest rates could go up dramatically - in which case a fixed rate loan is an excellent idea. However if interest rates go down you will not be able to make any savings on your loan, and you will be tied with your higher rate of interest.

The option is there for you to decide - and if you are looking for a low risk option then the fixed rate loan will be the best one for you.

 

Risk Warning
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.
Think carefully before securing other debts to your home.