Personal Loans - no sign of cuts
Tagged: Loan, LoansThink Money reports that the personal loans market is not showing signs of interest rate cuts.
Could consumer confidence affect lenders?
Tagged: Finance, Loan, LoansCould consumer confidence affect lenders?
Read the full article @ www.financialdominance.com
Secured Loans – still available?
Tagged: Loan, LoansAre secured loans still available? With property prices falling and the credit crunch upon us, you might expect secured loans to be less available than they once were – and you’d be right. However, it’s important to see each of these factors in context.
First, property prices – a key part of any secured loan decision. Prices are falling, but they’re falling from an historical high. According to the Nationwide House Price Index, the ‘average house’ was worth £164,654 in August 2008. That’s:
· over £21,000 below its October 2007 (peak) price, but
· over £22,000 above its March 2004 price.
After almost a year of falling house prices, the ‘average homeowner’ is still left with a significant profit, as long as they’ve owned that house for a few years or more. Of course, that profit isn’t really cash, but some of it can be turned into cash with a secured loan, provided the homeowner makes an informed decision – when prices are falling, it’s vital to think very carefully about the future of the housing market and whether it makes sense to free up some of their equity through a secured loan. Turning too much of that equity into cash could leave the homeowner facing negative equity if house prices fall far enough.
Second, the credit crunch. Like other forms of credit, secured loans are affected by the credit crunch – secured loan providers have become more ‘risk averse’ and unwilling to lend. This is largely about confidence: loan providers are also finding it hard to get credit, and they’re not sure how much of the money they’ve already lent out they’ll actually recover.
However, the authorities have taken – and are still taking – steps to reinforce confidence in the credit markets. The Bank of England’s Special Liquidity Scheme aims to ‘improve the liquidity position of the banking system and increase confidence in financial markets’ (basically, provide lenders with both the means and the confidence to lend).
As far as individuals are concerned, the Scheme means secured loans and other forms of credit are more available. The Scheme lets lenders temporarily swap some of their assets for Treasury Bills. Since they can use these Bills as collateral and borrow from other financial institutions, they’re more confident about granting credit, from secured loans to unsecured loans and other kinds of credit.
Can I get a secured loan if I rent my house?
Tagged: Loan, Loans, Mortgages, UKAn interesting article here answers this question.
Look for a loan?
Tagged: Finance, Loan, LoansLoan specialists ThinkMoney discuss where to find a £5000 loan.
Getting A Loan…
Tagged: Loan, LoansThe credit crunch means that applying for a loan is tricky business compared to recent years. Potential losses after years of confident lending have meant that lenders have had to tighten their lending criteria, making loans harder to come by.
That’s not to say it’s impossible to get a loan – after all, lenders still want to gain business – but most lenders will no longer give out loans that they consider high-risk. With this in mind, it’s essential that you are in the best possible financial shape before applying for a loan – it could be the difference between being approved or being unnecessarily rejected.
Lending growth slows in August, BoE reveals
Tagged: Finance, Loan, Loans, UKAccording to the BoE, growth in the amount borrowed slowed to 6.2 per cent, while the three-month annualised growth rate declined by one per cent to 2.6 per cent.
Personal Loans
Tagged: Loan, Loans, MortgagesThe most appealing aspect to most of the personal loan is that it will be accepted to fund almost anything. Should you want to put money towards a new car, improving your garden or even the shopping spree for a holiday of a lifetime you can save money by getting out a decent loan rather than pay on a credit card. Credit card interest rates are usually much higher and you will pay for the convenience.
If you have decided to take out a personal loan, don’t be tempted to take out a larger amount of money than you actually need. Although the rates are very tempting, if you have already come to the conclusion that you need to borrow and not save, do yourself a favour and don’t tie yourself in longer than absolutely necessary.
Before you do decide on the amount you are going to take out, make sure you are going to be able to make the required repayments. If you have any doubts what so ever about this think very carefully about if this is the right decision. You don’t want to make the repayments span a much longer term resulting in you paying a ton of interest; you will want to intend to pay your loan off as soon as possible.
Before the loan application is accepted you will need to get it authorised by the lender. They will analyse your credit history and determine how much of a financial risk you pose to them. If you have a bad credit history this does not automatically mean you will not be accepted but it will likely mean that you will be paying a higher interest rate for the same loan.
Try to find a loan with a fixed APR, so you know you won’t have any unexpected money going out towards the loan at any point. You will find it easier to reserve money from income to go right towards paying the loan off if you know exactly how much is needed in advance.
Many lenders have customized loans available to customers within the budget you require. Both unsecured loans and secured loans are available to those who need them from a large range of lenders.
Still Get a Loan
Tagged: Finance, Loan, LoansIt is unfortunately true that a lot of us within the United Kingdom are really feeling the pinch of the credit crunch and the pennies just don’t seem to want to mount up for anything at all. If you are trying to get enough money together to make that special purchase such as for a new car, a caravan or that amazing holiday with family, there is still a way to finance it without choosing one of the un rewarding loans in the bank shop window.
Even though it is probably hard to believe the financial experts are convincing us that there are still some decent and fair loans on offer, it’s just you will have to look a little longer and harder and perhaps at come less well known names instead of the high street banks and building societies we are more used to. Some of the more famous banks are charging a shocking 12% more than the most competitive loan offers out there!
Did you know that with a lot of big banks only 66% of people get the rating of interest and APR that’s advertised on the posters? The rest will be offered either more or less than advertised depending on their individual situations and financial history. So, due to this, it’s often even worth seeing what these banks will offer if there is no other option if you have a good credit rating.
If you manage to get a great deal be sure to only take out the amount you need, and to work out how much that is in advance so you are not left in the lurch either way of having too little or too much. It is always important that you make sure you are going to be able to comfortably make all the repayments each month, as you simply won’t enjoy your new “toy” if you are always worrying about how to pay for it!
If you are looking to get your hands on that dream car look into amazing holiday caravans, you can still grab a great deal on loans. Believe it or not, cheap loans are not a thing of the past just yet.
ThinkMoney.com: Lending down in August
Tagged: Finance, Loan, LoansThink Money have reported that lending is down in August