| Broadly speaking, two types of loans are | | | | your sound judgement. Secured loans are |
| available in the financial market - secured | | | | beneficial as these loans offer a lot of |
| and unsecured. Besides, there are many | | | | benefits. You can borrow up to £250,000 |
| variants within these two categories. This | | | | with the help of such loans. The repayment |
| wide spectrum of loans is meant for different | | | | period is also flexible and can extend your |
| types of borrowers. Homeowners, tenants, self | | | | repayments up to 25 years. |
| employed professionals, etc., all have | | | | |
| different requirements. They need loans that | | | | There are many factors that pull borrowers |
| suit their purpose and circumstances. | | | | towards secured loans. The variety of options |
| | | | available for paying the interest is just one |
| Different loans cater to the diverse needs of | | | | of them. It can be a fixed rate, variable |
| the borrowers. A secured loan calls for a | | | | rate, capped rate or discounted rate. In case |
| security that can be your home. However, you | | | | of fixed rate, you pay interest irrespective |
| can borrow without security also. Such loans | | | | of any market changes brought about by change |
| are called personal loans. Both types of | | | | in the base rate of interest. If you opt for |
| loans have their own merits and demerits. So, | | | | variable rate of interest, the amount of |
| you should compare loans and then decide what | | | | instalment would depend upon the prevailing |
| type of loan suits your financial | | | | rate of interest. It may fluctuate in |
| requirements. | | | | accordance with the changes in base rate of |
| | | | interest. It is relevant to know that |
| A large number of lenders have made the | | | | monetary policy committee of the Bank of |
| competition really tough. You might be a car | | | | England meets every month and decides on the |
| buyer or a student looking for a loan. It is | | | | base rate of interest. |
| important that you compare loans and rely on | | | | |