Money Supermarket Loans
The UK loans market is one industry that has been particularly hard hit in the current economic slowdown. Especially the high street banks, already overloaded with large amounts of bad debts and bad assets, have become increasingly tight on lending to anyone without a perfect credit score.Unlike in years gone by, when a personal loan could be had by nearly all Brits, the new restrictions being enforced by the banks have made getting hold of a good value loan a difficult job. Many find they are charged astronomical interest, but there are signs of hope with lenders finally beginning to reduce their interest rates.
There is a way though! We call it the Money Supermarket loans market. It is referring to the secured loans or homeowner loans market. There are many many lenders in the UK today that will have no problem to give you a loan if you are a homeowner with equity in your home. There are so many in fact, that is why we refer to it as the Money Supermarket loans market, because there are THAT many loans and lenders available.
Homeowners therefore have a real advantage when it comes to borrowing money through the money supermarket loans market, as owning property provides great potential for freeing up capital for personal use. Homeowner loans, as they are often known, allow you to use the equity available in your house to borrow money. (Equity means the value of your home minus any outstanding debts secured on it, such as a mortgage.)
In the money super market loans market, equity is the key to unlocking large sums of cash from the value of your property. Homeowner loans allow a much higher amount of lending over a longer period than unsecured loans, as they are guaranteed against the value of your property and are therefore considered less of a risk to the lender than an unsecured loan. Even if you have negative equity (i.e. your mortgage or debt is higher than the value of your home) it's often possible to get a homeowner loan, as many lenders will lend up to 120% of the value of the property. For the same reason, homeowner loans tend to have a lower rate of interest than unsecured loans. This means lower, more affordable monthly repayments than an unsecured loan. As with any other personal loan, the money is yours to spend in whichever way you want. You might want to make some home improvements, purchase land, use the capital to start up a business, buy a car, go on holiday or consolidate debts or loans. Some people have problems, often because of poor credit history. However, as homeowner loans are secured and provide a guarantee to the lender, people who have previously been unable to qualify for an often find it much easier to get a secured loan, thereby giving them access to borrowing that they could not otherwise have obtained. Homeowner loans can also be as flexible as you want them to be. At the outset you'll discuss and agree with the lender what terms and conditions best suit your needs. Typical repayment terms may be anything from three to 25 years, normally paid in monthly installments, and loan amounts tend to range from £1,000 to £250,000. Interest will be charged on the amount that you borrow, which is known as the APR or annual percentage rate. The specific details of your loan - the amount, interest rate and repayment term - will be calculated based on the equity available in your property (which will need to be valued), your personal financial status and credit history and the lender's confidence in your ability to repay.
You may find that the interest rates seem to vary considerably from lender to lender when looking at money supermarket loans. However, beware of how the APR is advertised - different companies calculate their APR in different ways, and often display their monthly rates more prominently than the APR, so it's not always easy to compare. (Monthly rates can be cheaper than the APR, which is very misleading.) For each product, find out what the APR is and how it is calculated so that you understand exactly how much the monthly repayments will be and how much you'll be repaying in total. This will enable you to compare like for like between products.
Another useful tip to bear in mind is that the shorter the repayment term, the less interest you'll be paying and therefore the lower the total cost will be to you. It's therefore best to find the shortest term that you can manage.
The money supermarket loans market can be accessed only online. Find an online secured loans broker and they will be able to search all the UK secured loan lenders and loans to find you the best loan today. Mr lender will also be able to talk to you and give advice on the pros and cons of different options to best suit your needs. Let them do the loan searching for you and you can just decide on a loan today.
