The Types of Loans Available And What They Are

  • Secured Loans: A secured loan is one in which you offer collateral. The most common type of secured loan is a mortgage
  • Bad Credit Loans: A type of secured loan in which you pay a higher interest rate in exchange for being granted a loan despite having a poor credit rating
  • Unsecured Loans: The money you borrow is not secured by any personal property. If you default on the loan, the lender cannot seize your assets. The money you owe on your credit card, for example, is an unsecured loan
  • Debt Consolidation Loan: This is usually a secured loan. The money borrowed is used to pay off debts (which are generally unsecured)
  • Which Loan is Right for You?
    The type of loan that's best for your situation is highly dependent on exactly what that situation is. If you're taking out a mortgage, a secured loan is obviously your only option, since lenders generally won't lend more than £25,000 without some form of collateral being offered.

    For many other purposes, however, you have more than one option.

    Loans

    Taking a loan isn't difficult but make sure you find one to suit your personal circumstances


    Mortgages

    Buying your home can be a tense time so find out about the different options you could consider.


    Insurance

    The right insurance can save you money and provide you with better cover so be aware of what you're buying.