Popular UK Loans

Financial crisis is no longer as frightening as in previous times. The availability of different credit facilities in the market has infused new confidence in borrowers. You can now overcome any unfortunate and unplanned incident in your life with the right kind of loan availed.

There are countless types of loans available in the UK market such as personal loans, unemployment loans, bad credit loans, graduate loans, career development loans, self-employed loans, commercial loans, debt consolidation loans, home loans, overdraft facilities, car loans, business loans, wedding loans and holiday loans to name a few.

Flooded with attractive special offers, effective loan promotions and a lot of confusing jargon, you may become perplexed when faced with deciding which loan to avail. However, you have to be very wary of making a wrong choice, falling into debt and going bankrupt. UK loans can be loosely classified as personal, mortgage and commercial loans. Personal loans, as the name suggests, are for gratifying everyday human needs and wants, whereas mortgage and commercial loans are dedicated money generating loans with a specific scope.

Personal loans come as both secured and unsecured loans. Each of these loans is useful in their own way in fulfilling their unique and specific requirements. Personal loans can provide you with money any time, anywhere and for anything you want without actually disclosing your reason for obtaining the loan.

Secured Personal Loans

Secured loans are popular since these loans can be availed not only against property, but also second mortgages, second charges on property, ex-council property or any secured borrowing against an item of significant worth. Generally, the terms and conditions of secured loans are far more flexible than those of unsecured loans. Online loan facility has made the process of obtaining a loan very easy. Even if tenants occupy the property, lenders are available and are willing to underwrite secured loans. Usually secured loans are available at a lower interest rate than an unsecured loan. Secured loans are also readily available to the self-employed. Many lenders will allow you to borrow up to 125% of the property value and with a longer repayment period than unsecured personal loans. This facilitates the repayments of secured loans.

Unsecured Personal Loans

You can avail these loans for home improvements, car purchases, debt consolidation or almost anything you desire. They offer borrowers a great deal of flexibility and loans are processed faster than secured loans. Unsecured loans are also available for tenants and homeowners, unlike secure loans which are applicable only to homeowners. An agreed amount, rate of interest and period is established. This encourages applicants to avoid the lure of borrowing more money than necessary and helps them to manage the repayments properly. However, lenders can take you to court if you default on repayments. Since many creditors in the market are ready to lend you money, it is always in your best interest to search the market to avail reasonable interest rates and avoid a rip-off. Unsecured personal loans are less of a hassle, as there is minimal paperwork to complete. More and more people are opting for this kind of loan as no immediate risks are involved in the case of repeated defaults or non-repayment.

As a loan seeker, you have to be aware of all the UK loan categories and weigh your options carefully to help you borrow money wisely. It is always in your best interest to seek help from qualified loan advisors.