Personal Loans & Personal Mortgages

By: Aisha Cristal

Borrowing money from the market has become a routine thing in this materialistic world. You may be a businessman, a salaried employee or a self-employed professional, financial restrictions are very much a part of our lives. The exact type of loan that you need in a particular situation depends on many issues. Your individual circumstances like financial standing and residential status matter significantly. A homeowner is differently placed than a tenant when he goes out to take loan. Similarly, the purpose of taking a loan is also equally important.

Some loans are meant for short-term consumption of the consumers. However, if you have a big objective like purchasing a home then you may need long term loans whose repayments can be spread over a long duration of time.

Mortgages are specifically designed for enabling you to purchase homes. The home that you are purchasing is mortgaged with a lender and you receive the loan amount to pay off the seller.

Personal loans, on the other hand, are totally different from mortgages. They differ in terms of loan amount, loan duration and the purpose for which you take them. Lenders quite willingly provide personal loans without any security. The loan amount is small, generally upto ?20,000, and is repayable in monthly instalments. You can use these loans for a number of reasons like home improvement, purchasing a car, meeting your educational expenses, etc.

If you need a loan amount in excess of ?20,000, then lenders normally require you to pledge your home. This type of loan is called a secured personal loan. Lenders across the UK offer you a number of loan and mortgage products. You should first evaluate your financial requirements and apply for a loan accordingly. Personal loan or mortgage, whatever your need be, can be applied online. All the major lenders in the UK including sub-prime lenders have strong online presence.

Mortgages
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