How much should I borrow, should I opt for secured or unsecured, what are the pitfalls of a loan, what is best for me, mortgage or loan? – are just a few questions which pop up when somebody is considering taking a loan.
Fortunately, the offers on loans are several, even from the comfort of your cozy armchair you may choose the most suitable for you in case you have a PC and it is hooked up to the Internet.
Before finalizing any decision, the most important thing is to read even the small doted letters to the end as it may contain information you wish to have noticed sooner.
To answer which lender offers the best rates will depend on how much you want to borrow over what period of time. For example, if you live in UK the best interest rate on a £5,000 loan over 3 years is from Masterloan at 5.7% and Abbey and Northern Rock at 5.8%. If you aim higher and want to borrow £10,000 over 5 years the lowest rate is again from Masterloan at 5.7% and Cahoot at 6.1%.
Whether your loan should be secured or unsecured, understand the difference between the two first. Secured loans are available to homeowners with the property being used as security, while unsecured loans do not require any security or collateral such as your home or other assets. So by now it must be clear, that if you are not a homeowner, then you cannot have a secured loan. A better option for you in that case is an unsecured one; however this has smaller loan sizes up to £25,000.
Pay also attention on the advertised APR and insurance options as these are also important details with great impact on your loan procedure.