3-12 Month Repayment
Rates from 278% to 1576%
3-36 month repayment
Rates from 4.7% to 278%
Your options for the best loan rates and some of the worst in the UK
If you are one of the many Britons who live from pay check to pay check, then you will certainly have to take out a loan at some point in your life for various reasons. Borrowing just gives you the financial ability to pursue a lot of things that can help improve your current circumstances. If your job or life demands you to have a car ASAP but you presently don’t have the money to purchase one, an auto loan can help you own a vehicle that meets your needs and budget.
Now when the time comes for you to take out a loan, bear in mind that every type of credit agreement is unique with its own set of requirements, interest rate, fees and charges, and payment terms and conditions, among others. With that being said, below are some of the options you can consider to enjoy best loan rates as well as the worst ones that you might want to avoid.
1.) Credit cards
Credit cards are the most popular borrowing options for most folks in the UK but they are also among the most costly ones. In terms of overall interest rates, fees, and charges, credit cards are more expensive than other types of loans that are easily accessible to ordinary borrowers. So when you’re looking for the best loan rates available in the market, you might want to want to crush out credit cards in your list of options.
There are plenty of real life instances wherein borrowers incurred credit card balances that where simply more than what they can afford to pay. And because of the growing demand and usage for credit cards, interest rates continue to sky rocket. Without sound management that involves on time payments and limiting the use of revolving credit only in emergency situations, anyone can easily tumble in a credit card debt situation that seems impossible to get out.
2.) Home equity
In the past, when the economy and housing market was in a robust state, many Britons maximized their existing home’s value to squeeze out the highest borrowing amount and the best loan rates they can get from banks and lenders. Today however, with a fragile housing market and uncertain economy, people in the UK are no longer as keen as they where once regarding home equity despite the potentially favourable terms and rates it provides. And when lenders began to implement more stringent lending criteria, it made the situation much worse.
Nevertheless, one of the best loan rates available in the UK come from home equity. A popular way to take advantage of equity is by refinancing your present mortgage and obtain an even higher one or to secure a home equity loan.
You can secure funding from home equity loans in a lump sum with payment terms that follow fixed interest payments that generally cover 5 – 15 years. Some of the best loan rates for home equity loans in the UK can fall less than 5%.
3.) Personal loans
Personal loans allow you to enjoy the best loan rates in the lending market without offering any of your valuable assets like your house as security to your credit agreement. This makes it an appealing option to people who do not hold appropriate equity but have good credit ratings. This also means however, that the loans will normally come with bigger borrowing rates than home equity loans.
The loans are generally short-term, unsecured forms of financing that are generally paid back through fixed monthly instalments in a period of one year to five years. Most lenders automatically withdraw the agreed payments from your checking account to minimize the risk of late payments and defaults.
Depending on the lender and how strong your application is, the maximum amount you can borrow through a personal loan is £25,000. Overall, the available borrowing amounts are normally bigger than credit cards but smaller than home equity loans.
But unlike most secured loans that are limited to certain uses like purchasing a car when it comes to auto loans for instance, a personal loan can be used for just about any purpose as long as it is legal. This means that you can use the money that you borrowed to consolidate credit card debts, cover the cost of your sons or daughter’s wedding, or take a long vacation in Bali.
There are also a growing number of online lenders that can cater personal loan applications through the internet with the use of your smart phone, laptop, PC, or tablet. To apply, simply follow these 3 quick and easy steps:
- Visit a licensed lender’s website and complete an online application form that will require you to enter some basic information about your personal and financial background. There is no paperwork and faxing of documents involved which means you can finish this step typically no more than 15 minutes.
- Once you’re done, simply submit your application and the lender will immediately evaluate all the information you shared to determine if you are qualified or not. The process is normally automated which means it won’t take long to receive a response from your lender. If there are no issues with your application and all the information that you sent, it’s possible to obtain a decision within minutes.
- If your application is approved, the lender will call you to notify you of the approval and send you a contract that explains the terms and conditions of your loan. If you agree with all that is written, simply sign the contract and send it back to your lender. Afterwards, the lender will conduct the final step of your transaction immediately which involves processing the electronic transfer of your funds to your bank account.
Online personal loans are processed a lot quicker than traditional options from banks and credit unions. You can normally complete a transaction, from application to signing of contract in just a single day. And once a successful agreement has been reached, you can expect the approved loan amount to be deposited into your bank account within 1-2 business days.
The interest rates they offer are competitively low with plenty of online deals that have rates hovering below 10%. And if you have an excellent credit rating and are already a repeat borrower, you can even access the best loan rates available for personal loans that can go as low as 5%. This kind of rate is a whole lot cheaper than those offered by credit cards.
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)
Loanovao is NOT a lender – we are a licensed broker working with the most popular direct lenders in the market to find you the most suitable short-term loan plan. Our FREE quoting service compares more than 40 lenders quickly and finds you a lender with the lowest rate that they are willing to lend to you today.
Rates from 45.3% APR to 1575% APR – we provide a no obligation quote, your APR will be based on your personal circumstances