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The 411 on Secured Loans: What you need to know
Any time someone borrows money from a bank, the funds lent are referred to as a loan. Any time when the bank asks for collateral (a security that the bank takes charge of if you are unable to pay, like your home or property), thats called a secure loan. A first secured loan on property is considered to be first charge, while a second loan (perhaps a home equity or second mortgage) is second charge. Secured loans are easier to obtain than an unsecured loan, as the bank has a means of repayment in the event that you are unable to.
There are many types of secured loan programs available, offering different benefits and such to the borrower. But no matter which one you choose, there are some things you need to know before you agree to or sign anything.
First, secured loans come in a variety of amounts (typically averaging between £3,000 to £50,000, but have been seen as high as £250,000 with some lenders). They are repaid on a monthly basis for a predetermined amount of time (usually between 3 and 25 years). Some loan programs may have a prepayment penalty (a fee attached to the loan if it is paid off earlier than expected), so be sure to ask your lender if this applies to your loan.
Second, the APR (Annual Percentage Rate) is the interest youll be charged for borrowing the money. Your APR will depend on several factors, including your credit history and equity available in the property. Its a wise idea to compare interest rates from different lenders to be sure that youre getting the best one possible.
Next, you need to know how to apply for a secured loan. The Internet revolution has changed the lending industry for the better, as its no longer necessary for you to leave your home to apply for a secure loan. Although you can visit your local branch of your favorite lending institution, its much easier to login online and enter your information, or to pick up the telephone.
Finally, you need to know how governing laws are protecting you. All secured homeowner loans are subject to the Consumer Credit Act of 1974. This act contains strict guidelines as to how money is lent out, covering loans up to £25,000. (Loans for greater amounts are unregulated). Before such a secured loan is granted, you will have to sign a legally binding credit agreement for the terms of your particular program. A consideration period of 7 days is to be granted to you by the lender. Lenders are to offer you insurance options to cover your monthly loan payments in the event that you are unable to pay under specific circumstances, such as illness, unemployment, an accident or death. All coverage options will vary between lenders, and so will the cost, so be sure to check with your lender for any details, specifically as to what is covered and what is not.
Doorstep Loans: No need to go to the relatives
Requirement of cash can arise anytime. Money is that thing which always comes on priority. People want money for many expenses like may be for sudden accident or any sudden bill. So at that time immediate solution is needed. Doorstep loans can help you in t his regard.
Here are some pre requisites which are as under and are necessary to followed:
Applicant must be the citizen of UK;
Applicant must attain the age of 18 years or above;
Applicant must possess a valid bank account in UK;
Applicant is doing a steady job and earning a sound source of income.
These mortgages can be availed by online process as it is fast and quick. Online process is hassle free and provides fast approval. Online application form is simple and by providing some basic details borrower can avail fast cash in less span of time. Borrower can avail fast cash within 24 hours of application. Name, age, gender, e-mail address, contact number, address proof, account number, etc. are some details which are required on the application form.
After approval the amount will directly get transferred in borrowers bank account. Doorstep loans are also for bad credit holders who are tag with bad records such as arrears, defaults, CCJs, IVA, late payments, missed payments, insolvency, foreclosures, etc. but all poor credit records are accepted by the lenders. The amount that applicant can avail ranges from £500 to £5000 with flexible repayment term and easy installments. Repayment tenure is from 15 days to 31 days. Bad credit holders can improve the bad credit ratings by repaying the cash on time.
Security is also is not required here. Borrower is expected not to pledge any collateral. It means that these mortgages are risk free for the borrower but risky for the lenders. Because if the absence of security the rate of interest of doorstep loans is slightly high. Any delay in repayment can cause penalty. Borrower has to pay the extra interest.