Live Wave Reviews Yes probably, but there are many factors here to consider, for example, is the lender flexible, is there an early redemption penalty, what durations do they offer for the loan (ie you may need a provider who will give you 10 years…that narrows your options somewhat).?
Secured or Unsecured loan – What Is The Difference?
A secured loan is where you borrow money on the basis that if you default on the loan, you sell your home to pay the debt. Yes it is risky, but sometimes it is the only way to get your hands on a large sum of money. Secured loans tend to be higher value, (£1000 – £1 million). An unsecured loan is not lent on the basis of anything valuable you own. Your salary is the deciding factor when you apply for an unsecured loan. Most will not lend more than half of your salary. Unsecured loans are often lower value (£1000 to £15,0000) than a secured loan because it is perceived as higher risk. Your creditors have nothing to take if you default.
Can I have a payment holiday?
Sometimes you are allowed a few months break from the repayments, or you may not have to start paying for 3 months. This is a flexible loan and not all lenders offer flexible terms. You will also need a good credit rating to be eligible.
How many months do you need to pay the loan off?
Some lenders will give a maximum of 5 years, others will give 25 years.
What is the early redemption penalty?
If you pay the loan off before the end of its term you are charged, most lenders will charge two months interest.
What if my credit rating isn’t very good?
Some lenders are fussier than others, generally, the banks are quite fussy, other smaller companies such as Finance Tracker, specialise in placing applicants with bad credit ratings. The Loan provider will charge a higher interest rate.
Who Do I Trust?
Many people fear borrowing, and quite rightly so. We will never knowingly place disreputable lenders on our site. All the Site’s and loans recommended by Compare Loan are from reputable and well known lenders, many of them household names. Our advice is to always read the small print and always consider how you are to re-pay what you borrow.
What about borrowing from a loan shark or doorstep lenders?
Although they may not be all bad, borrowing from loan sharks is something we would never advise you consider.