The interest rates for unsecured loans are more costly than at almost any other period in the past and they are at the highest rate for nine years which makes little sense when the Bank of England Base Lending Rate is still at the lowest ever at only half of a percent.
In 2001 the base rate stood at 6% and yet then an unsecured loan was a number of APR points lower than at present..
With the base rates standing at only half of a percent it is a strange situation that interest rates for unsecured loans are have higher rates of interest than they have been for a long time.
As well as the fact that they are expensive these days, unsecured loans are hard to achieve but it has always been like that with unsecured loans unless the borrower has a stellar credit rating..
An unsecured loan lender is not confident enough to believe that the applicant will repay the loan,and as such the loan provider always needs proof of the reason for borrowing the money.
For people who own their property there is no need to worry about unsecured loans as they have the better option of secured loans also known as homeowner loans.
The reason for the name is apparent as homeowner loans are secured on a property and therefore only those who own their property can apply.
Because these are secured loans, they have low rates of interest and are less difficult to obtain than unsecured loans and also the underwriting is less strict.
This slacker underwriting means that no additional proof of the reason for the loan is needed apart from stating the reason for the loan on the application form.
Homeowners with bad credit ratings can still be eligible for secured loans if there is a good amount of equity in his property and those with adverse credit would never be granted an unsecured loan..
Remortgages can be taken out to raise additional funds in the same way as secured loans, making secured loans or remortgages the best loan way for homeowners to borrow .
In 2001 the base rate stood at 6% and yet then an unsecured loan was a number of APR points lower than at present..
With the base rates standing at only half of a percent it is a strange situation that interest rates for unsecured loans are have higher rates of interest than they have been for a long time.
As well as the fact that they are expensive these days, unsecured loans are hard to achieve but it has always been like that with unsecured loans unless the borrower has a stellar credit rating..
An unsecured loan lender is not confident enough to believe that the applicant will repay the loan,and as such the loan provider always needs proof of the reason for borrowing the money.
For people who own their property there is no need to worry about unsecured loans as they have the better option of secured loans also known as homeowner loans.
The reason for the name is apparent as homeowner loans are secured on a property and therefore only those who own their property can apply.
Because these are secured loans, they have low rates of interest and are less difficult to obtain than unsecured loans and also the underwriting is less strict.
This slacker underwriting means that no additional proof of the reason for the loan is needed apart from stating the reason for the loan on the application form.
Homeowners with bad credit ratings can still be eligible for secured loans if there is a good amount of equity in his property and those with adverse credit would never be granted an unsecured loan..
Remortgages can be taken out to raise additional funds in the same way as secured loans, making secured loans or remortgages the best loan way for homeowners to borrow .
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Learn more about homeowner loans. Stop by Champion Finance's site where you can find out all about remortgage for you.
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