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Most people don’t think of loans until the need originates in their own lives. Borrowing money is neither an easy decision nor a decision which has no serious repercussions. Taking loans will have an impact on almost all other decision and your future financial plans. With UK personal debt growing by £1 million every four minute it is likely that loan borrowing is becoming more famous than ever.
It is common that people over spend leaving financial gap which loans can fill. Average consumer in UK is borrowing via every possible way but loans still remain the most popular way and economical way of borrowing money. Loans are available for every purpose in UK.
One of the several loan types available in UK is bound to suit your purpose. The most basic loan type in UK is personal loans which are provided by financial institutions or banks with or without collateral. Personal loans serve to finance any sort of personal purpose like purchasing car, furniture etc. loans amount varies from £5,000-£75,000 (or more) with repayment term of 5-25 years.
Secured Loans entail security of some kind for their approval. Security usually is in the form of real estate (home or property), car etc. But alternative form of collateral like stocks and bonds are also acceptable by some lenders depending on the loan amount. Unsecured loans in UK are well-suited for tenants and homeowners who are unable to provide collateral. With unsecured loans one can borrow loan amounts from £5,000-£25,000. Repayment term is 5-10 years.
If UK residents are facing difficulty paying back debts which are two or more in number then debt consolidation is the way to deal with it. With debt consolidation loans all pending debts are rolled into a single debt at low interest rates. This makes repayment more easy and manageable.
Mortgage is the debt instrument for UK residents which require the borrower to offer his property as security. Mortgage has immense diversification to include the requirements of every loan borrower in UK. Repayment mortgages, interest only mortgages, pension mortgages, ISA mortgage, self certified loans are only few mortgages which accommodate the financial requirements of those looking for mortgages.
Remortgage is a loan type that will suit those UK homeowners who already have a mortgage. With remortgage they can have better interest rates and terms. Also remortgages can help in raising money, debt consolidation or extending loan term.
Payday loans are meant for those who want to borrow money instantly. Payday loans in UK get approved and the money gets transferred within less than 24 hrs. Bridging loans in UK are short term loans that enable people to pay for new property before they have sold their current property. Loan term is from one month to 12 months and you can borrow money from £100,000-£400,000.
