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UK Mortgages & Loans -> Personal Loans

Our comprehensive and independent service will search through the different personal loans on the market to find the best deal for you. We have access to hundreds of loan products from over 50 different UK providers in the UK, as well as many exclusive deals, so getting the right personal loan couldn't be easier.

To find the personal loan that is suited to your circumstances, simply complete the short form and one of our specialists will find the best buy for you.

There are a great number of loans available on the financial market today. One of the more popular loans is that of a personal loan.

These loans come in two forms – a secured personal loan and an unsecured personal loan. The main variances between a secured and an unsecured loan are:

Unsecured Loans – These loans are generally for both homeowners and non-homeowners; they are able to be processed fairly quickly; they generally have a higher rate of interest compared to that of a secured loan; they normally need a better credit history for the borrower as their property will not be used as an insurance against the loan and the loan lender could also use a system for credit scoring.

Secured Loans – These are mainly for homeowners; they could be used by those individuals who have a poor credit or bad credit history; the borrowers’ property is used as a form of collateral against the loan and they will normally offer a low rate of interest.

The 'security' of the borrower having this loan held against the equity of their property is why the rates of interest on these loans are so low. These rates will also be based on the actual amount of money that someone borrows and of course on their personal circumstances as well as their credit history.

A secured loan will give the borrower a better rate of interest, a bigger borrowing facility as well as a longer repayment term compared to that of an unsecured loan. This is simply because of the fact that if the borrower does not keep up their loan repayments, they could quite easily lose their home.

When a person is deciding on which type of this loan to obtain they should look at a number of factors.

If they choose to take out one of the unsecured personal loans which are on offer it will be very advantageous to the customer for a number of different reasons. Whatever they are using the loan money for will more than likely be a very important financial venture, this is whether it is for general home improvements, buying a car, consolidating their other existing debts or simply for a family holiday.

In order for a borrower to obtain the most suitable loan for them, they must be prepared to look around the loan market and compare each type of loan against each other as well as against their own needs.

If someone has chosen to obtain a personal loan, they will actually be committing themselves to a financial agreement which will not only normally last for a length of time between 1 to 5 years but will also cost them extra money in general charges as well as the APR charges. A lot of borrowers will therefore think it to be very important that they try to obtain the best deal for themselves and therefore save money where they possibly can.

Another import factor that a customer should consider when they obtain a personal loan apart from the general APR charges, are that a lot of loan companies will also charge a number of penalty charges. These charges will vary depending on each loan company. Some of them will also offer a payment protection insurance which is basically a product which will help the borrower to cover themselves if they lost their job or became ill and was not able to keep up with the loan repayments.

Other charges that loan companies may charge and that the customer should make themselves aware of are:

Early redemption penalty charges – If someone has obtained a loan from a provider and is fortunate enough to be able to repay it prior to the loan completion date a few companies may charge them an early redemption penalty fee. This fee is generally around two month’s interest.

Personal Loan payment protection - If a borrower has payment protection against any of their personal loans they could actually be paying more than £2000 on top of their primary debt including their interest. The customer should therefore weigh up the pros and cons to having this protection prior to obtaining it. If they have been in a job for a long period and they are very healthy then it may actually be more of a benefit to them not to have this insurance as they are less likely to need to use it.