News - Important Checks Before You Sign Up For a Loan

With personal debt in the UK exceeding £1.3 trillion in April and yet another interest rise, many people are struggling to cope. Consolidating all your debts into a lower affordable monthly payment can be the answer for some. However, it is important not to jump into the wrong type of finance for your personal position.
A recent survey by a leading firm of financial advisors recommmends these vital checks are in place before you sign.

Important Checks Before You Sign Up For a Loan

If your credit history is less than perfect then finding a loan from a high street lender can be difficult. What are the options available? Make sure you follow these important checks before taking up a loan offer .

Secured or Unsecured Loan - Check whether the loan offer is for a Secured Loan and therefore secured on your property, or an Unsecured loan offer.

Interest Payments Rate - As with any other service or product it is a good idea to compare the interest payments you will be charged from several independant lenders, as this will allow you to judge how competitive the loan rate you are being offered is.

Variable or Fixed Rate - Ensure you know what your monthly payments will be and whether the payments are fixed or variable. Be aware that if the loan has a standard variable interest rate (SVR) then your monthly payments will change according to the bank's base interest rate. If the rate is fixed it is much easier to budget every month.

Loan Period- Determine exactly how long you will be expected to make payments.

Cost of Loan - Make sure you know how much you will pay back in total. You can use a loan calculator to find this and your monthly payments.

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