Overview of UK Loans

Payday Loans

Payday loans are a short term method of finance, whereby an individual can receive an immediate (often within 24 hours) cash sum, to be repaid typically within 30 days using their next salary.

Advantages include the fact that the money is available at very short notice.

Disadvantages include the high interest rates payable on the finance, and also the short term nature of the finance making it not suitable for many purposes.

Secured and Unsecured Personal Loans

Secured loans involve the lender taking out a charge against your home. This means that your home is at risk in the event that you fail to make repayments on the loan.

Unsecured loans, as the name suggests, does not involve the lender taking out a charge against your home.

Typical repayment periods for secured loans are 2 to 10 years. Typical borrowing ranges from £5,000 to £25,000.

It is advisable when looking to take out a secured loan to shop around as the interest rates can vary significantly from lender to lender. Your eligibility for loans may depend on a number of circumstances, most notably you credit history, your income and the value of assets you have as collateral.