Personal and Secured Loans

By: Alan Reed

A Personal loan is essentially a loan taken out by an individual and generally can be used for any purpose. It differs from other loans in that
generally it is unsecured this means that it is not secured on anything, ie property, vehicle etc.

In most circumstances, the loan can be completed in a matter of days, and the funds available, usually deposited into your bank account or sent by
cheque. There are limitations, the higher amount you are looking to borrow the better your profile needs to be, the max loan size realistically is
around ?25,000.Your profile means essentially your individual circumstances, so factors taken into account are, Homeowner or tenant, employment status,
age and your credit profile. These factors are used to decide the max loan amount and the interest rate. If you are a tenant you may find it difficult
to obtain any loan, this is because a homeowner has the benefit of added security this means that the lender has the option, if you default on the
loan payment to put a charge on your property, by way of a caution or some other notice, through the county courts, essentially making it a secured
loan. This charge means that should you decide to remortgage or obtain a secured loan, this charge, usually, would have to be settled, to remove the
charge.

Self employment is one factor that can have a detrimental effect on any application, due to the fact, that you may need to self certify your income,
this causes lenders a problem because they are unsure of the amount you earn. This factor alone can increase the rate of interest. You are perceived
as a greater risk because your income cannot be proved

If you find you have been turned down for a personal loan then another option, if you're a homeowner, is a secured loan. These tend to be easier to
obtain because the criteria is more relaxed, Subject to sufficient equity in your property.

A Personal Loan can be sourced from a good packager of loans, who will guide you through the process and keep you fully informed until the loan
completes.

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