Fast Online Loans
£50 – £5000
Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
Choosing The Best Loans Available in 2019
There is an assortment of loan types in the UK today that can cater different borrowers and needs of funding. There is also an abundance of lenders offering them from traditional banks and lending institutions to the more up to date and versatile online loan lenders. Given the variety of options and avenues available, the questions now are what are the loans that you may get in the UK today? This would be difficult to answer as a loan that is ideal for one person may not have the same result to the next. This is because the bests loans for you will depend entirely on three things:
- The amount that you need to borrow
- How long you need to pay it back
- Your present circumstances
With that being said, here are the best types of loans that you may find in the UK today, from guarantor loans, none guarantor loans and bad credit loans that can be suitable to your needs and unique circumstances. We have also listed some of their distinct advantages, a few of their setbacks, and the other things that you might want to know to help you make an informed decision on which loan type suits you best.
The Best Loans with a Guarantor
The loans with guarantors are one of the soundest alternatives that you can consider if you have yet to create your own credit history or if you have an adverse one. Some of the benefits that you can enjoy the loan include:
Cheaper interest rates. They are considered one of the top loans in the UK today simply because of the lower interest rates that they provide compared to other loan products. This is because your loan deal is back by a person who has good credit offsetting the risk involved in your application and allowing lenders to grant you with favorable rates.
- Flexible repayment terms. The loans provide flexible repayment terms that you won’t find in other loan options. You can choose a short, medium, or long-term loan depending on your needs and present circumstances. What counts the most is your affordability and you have the complete freedom to shorten or extend your term whatever you see fit.
- Larger borrowing amounts.With a guarantor loan, you can borrow anywhere from £500 to as much as £15,000 depending on your lender and your qualifications. This means that when you need more money to cover costly matters, such as home improvements or vacations, you have the option to borrow more.
But just like any kind of loan, there are risks and consequences that you will have to bear in the event that you default from your loan. In the case of guarantor loans, you and your guarantor’s credit rating will become severely damaged affecting both your ability to secure a loan in the future. The guarantor will also be required to take over the loan repayments which could potentially ruin the relationship that you share with that person.
But the loans are not only reserved to those borrowers who can offer a guarantor in their loan deal. If ever you find yourself in need of funding but sourcing out a guarantor is out of the equation, there are secured and unsecured loans that you can look into to give you the funding that you need with competitive rates.
If there’s no available guarantor in the loan deal, you also got the choice to offer few of your assets to ensure that you’ll have a loan. This kind of loan is known as a “secured loan” and it minimizes the risk of the lender because of the offered property or assets that stand as a collateral. With such a security in place, lenders will not hesitate to grant you large amounts of loans with low interest rates.
Now, there are various kinds of secured loans and each one can serve you best depending on your needs and present situation. Here are some of the most popular secured loans in the UK today:
- Mortgage Loans – The loan is secured on the property that you purchased. In the event that you fail to keep up with your mortgage payments, the lender has the right to sell your property at an auction and foreclose it. Because properties like homes are considered as major purchases, mortgages typically last 15 to 20 years.
- Logbook loans – Logbook loans are one of the most popular secured loans in the UK today. This is because you can enjoy instant funding as long as you have a car that you can put up as collateral. You can still keep using the car as long as you maintain your repayments as you will only surrender your vehicle’s logbook or V5 document. With logbook loans, you can borrow as much as £50,000 or 50% to 75% of your vehicle’s trade-in value.
- Pawnbroker loans – Pawnbrokers in the UK provide short-term loans to borrowers placing a temporary lien on the item that is being put up as collateral. There are various kinds of items that you can offer as collateral including tools, jewelry, musical instruments, electronic items and gadgets. The amount that you can borrow will be based on the value of the collateral. The more expensive it is, the bigger the amount that you can avail..
Secured loans are one of the top loans with no guarantor for various reasons. First is the truth that you can avail of lesser interest rates even if you have bad credit. This is because the presence of the collateral provides security on the part of the lender and offsets the risk involved in a default. This gives lenders the confidence that they need to give you with lesser interest rates. Second, you can avail for large amounts of loans that can be used for major purchases like homes or take on a long vacation. This kind of amount is hard to access with other kinds of loan options.
When it comes to unsecured personal loans, there is no property or collateral involved to secure your loan deal. This makes it less risky on your part as you lose nothing in the event of a default and will end up only with a tarnished credit record. All the risk falls on the lender and if you decide to default on your loan, they won’t have a property or vehicle to sell to recover the cash that you owe them. For this reason, unsecured loans provide higher interest rates compared to secured ones.
Supposing you are planning to take out an unsecured loan, there are various choices that you may look into. Try to pick one that provides the least interest rates and satisfies your needs.
- Personal loans – Personal loans are secured by nothing but your signature and credit score. The loans are normally provided by banks and credit unions although online lenders are also offering them to different borrowers in the UK. Depending on the lender and your eligibility, you can take out a personal loan anywhere from £500 to as much as £25,000 with a loan term of 1 year to more than 7 years with monthly installment payments. A loan is an ideal option if you have a good credit because they generally come with a relatively low-interest rate.
- Credit Cards – Many people use credit cards to borrow money and make different kinds of purchases. They are extremely appealing financial products because you can borrow whatever you need whenever you need it. And if you need to borrow more, you can charge more to the credit card up to its limit. The only downside to credit cards is that interest rates are typically higher than other forms of unsecured loans and you can easily become caught up in an unmanageable debt because of the highly accessible credit stream that it provides.
- Student Loans – The loans are designed to help students advance their academic career be it a college degree, MA, or PHD. Normally, there are two types of loans that you can avail in the UK: private loans and government loans. Government student loans have less interest rates and can only be paid after you have finished your studies and are earning a certain amount of income. However, the loan can only be used purely for school purposes such as covering tuition fees and the purchase of books. If you want to take out a loan to purchase a new car that you can take advantage to drive yourself to school, a private student loan would be the right option.
- Peer to peer loans – The unsecured type of loan gives you the ability to borrow money from individuals instead of banks and traditional lenders. You can find plenty of peer to peer loan websites in the internet today and you can simply post a loan request online and wait for people to step in and cater your need for funding. Just like personal loans, they are typically fixed-rate installment loans with very competitively low interest rates. They also allow you to borrow a good amount of change.
The most important thing to bear in mind when it comes to unsecured loans is that credit rating is a prime factor in getting approved. They are one of the loans with no guarantor available in the UK today because you can take out large amounts of money that can be used for any purpose without the need to put up any form of security. The interest rates are also competitive and the payment terms flexible and often tailored to your needs and present circumstances. However, if you have bad credit, then obtaining them would be extremely difficult. You’re better off with a guarantor loan or secured loan if your credit rating is not that impressive.
Loans for Bad Credit – Which is Best?
Aside from guarantor loans and secured loans, there are also loans for bad credit that you can look into if you have poor credit. The loans are typically offered online by specialist lenders whose financial products are designed to cater people with unique circumstances. Some of the popular bad credit loan choices that you may look into in the UK today include:
- Payday Loans – The loans work like cash advances in which you borrow a small amount of money from a payday lender and then pay it back after two weeks or a month or typically in your next payday. You can take out a payday loan anywhere from £100 to £1,000 either in-store in a lender’s physical branch or online through its website. The loans are extremely popular short-term options in the UK because of the ease, speed, and convenience that they provide. Normally, as long as your income is enough to afford the loan, you can get approved minutes after you made your application and have your money deposited into your bank account after a few hours.
- Doorstep Loans – Also called home loans, the financial products are also popular in the UK because of the unique benefits that they provide to the borrower. For one, you don’t need to leave the comfort and privacy of your own home to enjoy small term funding because the loan can be arranged right in your living space. A friendly lender will visit your home to iron the details of your loan and once you agree on all the terms and conditions presented to you, the loan will be handed to you in cash right then and there. The agent will then return every week to collect small payments until you have paid off the entire loan.
- Online personal loans – There are also plenty of online lenders who provide personal loans to people with bad credit. The process of taking out their loans are different from those that are offered by banks and traditional lenders in a way that they are easier to accomplish, are more lenient, and have quicker turnaround time. If you are qualified, you can typically have your money after two business days.
While bad credit loans are extremely useful to any borrower who is caught up in an emergency situation, you need to be aware that the financial assistance tend to come with higher interest rates. It would be best to make sure that you can comfortably afford to repay the money you borrowed. to avoid falling into in encumbering debt. Try to compare all your options carefully as well so you can keep your costs down.
Getting the Right Loans from Direct Lenders
Now if you’re looking to take out any of the loans that have just been mentioned earlier, the first thing that you need to consider first is choosing the lenders who will provide you with the funding that you need. The question therefore is, who should you choose and why? A lot of people have this perception that borrowing from a direct lender is significantly safer compared to what we call as middle men or brokers. However, there is no need to worry if you rely on a third party site as they are only one of the viable means to reach direct lenders on the internet.
If you prefer doing everything yourself, you can directly apply for a loan from direct lenders through the world wide web. There is a bit of challenge, however, as there are plenty of lenders that provide different loans and choosing the one that is ideal to you and your needs can be like finding a needle in a haystack. You can simplify your search by comparing rates and direct lenders so you can have a clear picture of what your options are so you can get the best deal that works for you.
Here are some questions to ask as you compare your lending options:
- Have you already taken out a loan from a direct lender? If yes, what was your experience with it?
- What kind of service does the lender offer?
- How accessible are their loans and services?
- Does the lender provide a variety of refinancing options?
- What loan program works best for your needs and present circumstances?
- How much does the lender charge in origination fees?
Best UK Loans For Instant Funding
Finally, if you want to enjoy the loans in the United Kingdom and the loans that provide instant financing especially when you need it the most, banks and other traditional lenders might not be the right answer. After all, it can take several days and sometimes even more than a week before a bank reaches an approval decision on your application; not to mention all the admin fees and hectic documentation that you need to provide to complete the process.
If you are in an emergency situation, time is of the essence and in these moments, online lenders are the best way to go. This is because the process that they provide is a lot faster and easier because of the use of advance technology and the accessibility that the internet provides. Depending on the loan option, you can normally enjoy funding in the same day you made your application.