Types of Loans

In the current economic environment, where loans are not readily available to use, it is useful to know what options you have before applying for a loan.

Secured loan

A secured loan is a loan that is safe for your property and is available to people who have a mortgage on their property and have adequate equity in their property. If you have a good credit history, the maximum loan-to-value (LTV) is accepted, currently 85%. Mohela Your loan and mortgage loan amount should be less than 85% of your property value. One of the main advantages of having a secured loan is that the lender is more likely to pay you because they charge you the second amount (behind the load kept by your mortgage lender), which will secure the loan for you. . Your payment is in default. You can also borrow bigger loan amount with maturity than the unsecured loan.

unsecured loan

Unsecured debt is a loan that ends on the basis of your personal circumstances; HD lenders also check your credit balance along with your income and expenses. Although loans are unsafe, lenders lend to homeowners rather than tenants. For the simple reason, in the event of late payment, the lender will be charged for your property. Unsecured loans are usually available for a small amount of up to £ 15,000 and for short terms, who have good credit without CCJ failures or other bad credit problems.

Loan guarantee

Guaranteed loan is a loan to a person who can provide a suitable guarantor (co-signer). The applicant does not need good credit balance because the loan guarantor's credit is filed in the balance. To be fair, guarantor's landlord's credit rating should be good. If the claimant is by default in any way, the lender goes to the guarantor to get his money back, so the lender is not very worried about the credentials of the applicant. The main advantage of such a loan is that it is available for poor credit, CCJ standards, and helps in maintaining your credit while improving your credit rating. Mohela login The main problem with this type of loan is the interest rate, which is generally higher than any other loan.

payday loan

Salary loans are short-term loans for a small amount, usually up to 1,000 pounds, which are fully paid on the next payroll. In order to qualify, you must be a full time employee and pay directly in your bank account. You must be at least 18 years old and have a debit card. You should use only as a stop-gap loan to address your short-term problems, which can be solved before your next payroll. Interest rates are usually higher. In most cases, the lender will charge £ 25 for each £ 100 you borrow. The biggest drawback is that you have to pay the full loan on the next salary. For this reason, there should be a debit card in your bank account, because the lender automatically deducts the entire amount from your bank in the next bank.

Logbook loan

Logbook loan is a loan that is registered in your logbook. Loans are available up to £ 25,000. To be eligible for a car, you must be financially independent and be at least 18 years old and must become the legal owner of the car. This kind of loan is available without keeping your credit rating, but the interest usually charged is very high (check the loan amount before signing the contract).

Personal loan

Personal loan is another name for an unsecured loan and hence it is available for better credit rating and 15,000 pounds and maximum 10-year 5-year terms.

Debt consolidation loan

Debt consolidation loans are loans that are borrowed to integrate only one loan loan, loan or credit card debt to reduce your monthly liabilities. It can be safe or unsafe. Debt consolidation loans can help you reduce your monthly responsibilities and get your money back on track.