Category Archives: Home Mortgage
Car Loans- Wheel your money
Today when owing a car has turned into a necessity from luxury, one can’t wait for years to save money and then buy a car. Car loans help people getting a car of their choice and need. With the car loan market in UK getting bigger by the day, the borrower can get a car loan at attractive rates. There are lucrative deals on new car loans and used car loans in the UK market.
Car loans can be secured, as well as unsecured, the latter being more popular. Lets have a look at both the options: Unsecured car loans- The borrower needs to have an excellent credit profile for procuring an unsecured car loan since it requires no collateral to support. Different banks and lenders have varied interest rates for this loan type. Unsecured car loans do not risk your assets, so is preferred by the borrowers.
People who already have a mortgage running on their home, car or property go in unsecured car loans. Elimination of valuation of asset and legal issues concerning it quicken the process. The APR on unsecured car loans is usually higher than their secured counterpart. Though the loan amount depends on the brand of car you have chosen, it also depends upon the credit history of the borrower. The current APR that lenders in UK market are offering is ranged in between 6.4% to 14.9% (fixed).
The following are the agreements that come under unsecured car loans:
Secured Car loans- They demand an asset to be placed as collateral for availing the loan. Being backed up a security in the form of house, they carry a comparatively low rate of interest. Since they involve a great risk in the form of house getting seized by the lender, this loan type is not that popular.
Car loans are basically the best way to get a car since borrowers may not have liquid cash to spend. But it requires a detailed comparative research of various deals on car loans available in the UK loan market.
Business loans For all business types
Every business irrespective of its type and size needs funds. In an age, when people have to take loans even for routine personal needs, self-financing a business is virtually unfeasible. Business loans can give a concrete shape to the dreams of an aspiring entrepreneur and a new life to an existing business. But, to get the maximum benefits, deciding the right type of business loan is very important. As per their requirement, businesspersons can choose from secured and unsecured business loans.
Secured business loans require collateral – home, property, valuable asset or even your business premises – for the loan amount. As collateral secures the lenders investment, the loan seeker can negotiate for low interest rates and suitable repayment terms and conditions. The bargaining feature of this loan type makes it suitable for large monetary requirements (£50000 to £1000000 approx). Please note that repayment slackness can lead to security seizure. Hence, loan seekers should avoid over borrowing and keep track of their repayment schedules.
Unsecured business loans on the other hand do not require collateral for the loan amount. As there is no collateral to secure the lenders investment, this loan comes with higher interest rates and virtually fixed repayment terms and conditions. In the absence of the bargaining feature, this loan type is suitable for short-term business requirements. Though absence of collateral makes it a comparatively safe option and poses no immediate risks to the borrower, non-repayment or repayment slackness can force the lender to take a legal action.
The approval time of a secured business loan is longer as compared to an unsecured business loan because the entire property evaluation process requires a lot of time. For an unsecured request, the basic approval criterions are past credit record, future repayment capacity, required amount and purpose. Secured loans are majorly availed for new set-ups and major expansions whereas unsecured loans for short-range or urgent business requirements. But, what if a businessperson is neither in a position to offer collateral nor in position to show a positive credit record? Nowadays, lenders have opened arms for bad credit holders too and are offering them a second chance under bad credit business loans.
Besides, the above mentioned types, there a variety of other business loans segregated on need basis like small business loans or micro business loans, commercial real estate loans, franchise start-up loan, business acquisitions loans, equipment financing loans, construction financing loans, equipment leasing loans, etc. Previously, getting a loan support especially for business purposes was not easy, as the credit market was scattered, unplanned and uncontrolled. Earlier the concern was simply approval centric. But, now it has diversified into getting the right type of business loan. So, take advantage of the growing competition by doing a proper market analysis.