Tag Archives: he
The pros and cons of secured loan UK
The whole concept of secured loan in UK revolves round collateral. Collateral is a technical term which means the property that is used as security in a loan. Any property of significant money value has acceptance as collateral. However, in UK a home is most frequently used as collateral. Though secured loans in UK are offered against the equity available in a home, in special cases no or zero equity is also accepted.
Some people find it risky to take loans against their home. Being aware of the fact that they will have to lose their property if they fail to pay off the loan, they shrink back from taking secured loans. It cannot be denied that there is risk of property repossession in this type of loan. Yet, all people do not avoid taking them. Rather, plenty of people think of it as a cost-effective method of raising fund. In fact, there are genuine reasons behind the popularity of secured loans in UK.
First of all, it is a gainful bargain for the borrower. He gets the chance to undertake a major financial venture as this loan allows him to take out a hefty amount of money. He has the leverage to borrow as much as his home equity lets him to. Even in some cases he can borrow more than his home equity allows. There are lenders who sanctions loan amount of up to 125% LTV.
Besides, secured loans UK offer high level of flexibility in repayment terms. Longer duration of time to repay the loan, low APR, smaller monthly instalments are all awarded to the borrower. This is done as reciprocation to the gesture he shows by offering collateral. Moreover, the lender also gets the freedom to use the amount advanced by personal secured loan UK for a plethora of personal needs. So far the risk factor is concerned; all the flexibilities mentioned here are enough to back the borrower to easefully pay off the loan and avoid property repossession.
Unsecured Loans No Credit Check: Do not worry about credit rating
With the rise in inflation, the expenses of people have also risen tremendously. Thus, it is getting difficult for them to live their life satisfactorily by managing all their expenses in their fixed monthly income. And, therefore they look out for some loan to fulfil all their demands. A bad credit score is very troubling when a person is looking out for a loan as his loan application may be rejected by the lender. Earlier credit history of the borrowers was paid on much more attention by the lenders while granting loans to them. And, those borrowers who had bad credit history were not granted loans easily. They had to face a lot many troubles to get their loan sanctioned. But, now looking forward towards the need of people, unsecured loans no credit check have been introduced in the financial market to help those borrowers who suffer due to their poor credit score.
Unsecured loans no credit check as the name suggests are the kind of loans that do no demand any kind of collateral in the form of valuable assets like any real estate, building or any other property. The absence of security against the loan makes the lender feel little insecure in case the borrower fails to repay the entire loan by the time. Thus, he recovers his risk to some extent by imposing higher rate of interest for these loans. The loan amount for these loans have a range from £1000s-£25000 with a loan repayment period ranging from 1-10 years. The borrowers must take care of some of the conditions before applying for these loans like he must have the citizenship of UK, must own an active bank account for the transactions to take place, must have a regular source of income and must be 18 years old or above. Those borrowers who have a bad credit status like CCJs, IVA, late payments, arrears, defaults and bankruptcy can avail these loans without any trouble due to the absence of credit check. Those borrowers who have a bad credit score, they get a chance to improve their credit rating if they repay the entire loan amount in time. The borrower can use the loan amount as required by him like he may spend it on some of the urgent expenses like education, wedding, settlement of a new business, car repair, home repairs, debt consolidation, vacations etc. There is no limitation on the use of the loan amount.
The borrowers who find it difficult to stand in long queues for the tedious and time consuming loan application, they can certainly apply for the online loan application process. It has certain advantages like it is very quick process, one can apply from the very comfort of his own home and he need not move out of his home and it is not tedious due to the absence of the documentation-work. The borrower here is asked to fill an online application process with some required details and then send it to the lender online. After verification of the provided information, the required loan amount is transferred to the borrowers account within few business hours.