What Type Of Loan?

The type of loan you are looking for will depend on several circumstances,firstly, are you a homeowner or a tenant.This will decide wether you have the option of a unsecured or secured loan.What is the purpose of the loan,and how much are you looking to borrow, these are some of the considerations and decisions you need to make before deciding what type of loan is best for you.

An unsecured loan is a loan which has no security, basically you are not securing the loans against your home/property. It is sometimes called a personal loan, and generally you can borrow upto £25,000, although the higher the amount the better your credit profile needs to be. Loans can be used for almost any purpose and can usually be completed very quickly, usually within 48 hours. There are various sources of unsecured loans, the more popular being your own bank and several high street lenders. If you are self employed or have a adverse / Bad credit profile you may find it difficult to obtain an unsecured loan, that is where a secured loan option is available.

A secured loan is a loan which is secured on your property, you can usually borrow upto £100,000 or more dependent upon the equity available in your property. They are usually easier to obtain because you have the security of your property as collateral. This makes the loan, less of a risk to the lender and usually you can get a better rate with a secured loan than an unsecured loan, especially if your profile is adverse in any way.

The process for a secured loan does take longer, most companies, in the right circumstances, can complete a secured loan within 10-15 working days. This is dependant upon several factors, one of which is the loan amount, if under £25,000 the loan is termed a regulated loan and has a cooling off period, if the loan is over £25,000 then it is termed an unregulated loan and can be completed much quicker. Other factors include your current first charge / mortgage company, if they have a restriction on your property then consent for second charge needs to be obtained, this can take anywhere from 2-8 working days dependent upon the lender.

A good loan company will be able to inform you of the approx time the loan will take and what information needs to be obtained, and will keep you informed all along the process, until completion.

Alan Reed is a financial expert and writes for the following websites, http://www.e-loans4you.co.uk,http://www.chrysalisfinance.co.uk and http://www.e-securedloans4you.co.uk

Loans, Home Loans from e-loans4you
No proof of income secured loan, Self Employed Loan from chrysalisfinance
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