Loans are very straight forward to take out these days with
many providers wanting your buisness. There are literally hundreds
of potential lenders from which you can choose each with differing
rates and repayment terms.
There are two main types of loan that are available in the
UK, unsecured personal loans and secured homeowner loans:
Unsecured personal loans are generally repayable on a monthly
basis at a fixed rate of interest. They are not linked to
your home, meaning that the lender will have little option
buy to sue you in the county courts to recover their money
in the event that you fail to repay the loan.
Secured homeowner loans or second charge mortgages as they
are sometimes known, are similar to personal loans that are
secured by a second charge on an already mortgaged property.
With this type of loan, your home is at risk if you do not
keep up with your repayments. Put simply if yoou don't pay
you could lose your home.
By law any loan provider must tell you the APR, or Annual
Percentage Rate for the loan. The APR on a loan reflects the
true cost of a loan to you, taking into account the loan interest
rate and any additional charges. The idea of APR is to make
it easier to compare loans from different providers and different