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