Loans Blog

The Personal Loan Ranger says:

"Hey kids, always remember that your horse may be at risk if you fail to keep up repayments on a mortgage or any other loan secured against it."

Financial expert David Kuo, of Fool.co.uk, has suggested that flexibility should be a key consideration for consumers when choosing a personal loan.

Advising that a flexible loan may currently be a better choice than a secured loan, Mr Kuo claims: "The option of flexibility will allow a borrower to repay a loan earlier and cut the total cost of the loan."

The modern day simplicity of arranging a loan or credit card has led to many of us becoming quite complacent - not being too worried about needing to find some quick cash for anything that may lie ahead.

However, the availability of such borrowing is definitely shying off. Now that the banks are also fretting over being short of cash, they're becoming increasingly cautious about who they will lend to. Many lenders have ditched unsecured loans altogether in favour of the less-risky secured loan.

Equifax has reportedly experienced double the number of credit checks being made by consumers, desperately trying to arrange a personal loan or credit card as the clamp-down takes hold.

Keep your favourite bowl and spoon handy - the credit crunch is still the breakfast of choice for many current financial reports. It's hard to swallow, as cheap personal loan availability is becoming increasingly difficult to track down as a result.

Many lenders are showing a nervousness about the unsecured loan market, but there are still some good affordable secured loan deals out there. A personal loan advisor can help you find and understand them.

The price of both unsecured and secured loans can vary significantly from one loans company to another. So to get the best deal available for your budget on interest rates and repayments you will need to compare loans on offer from a range of providers.

Fortunately, the internet makes this job infinitely more easy than it was not so long ago. In many cases, you can now fill out one simple online loans form to compare quotes from many different lenders in seconds. This saves a great deal of time and frustration, and represents a smart route to the best loan deal.

Owing to the 'global credit crunch' which we are currently hearing so much about, the availability of cheap credit in the UK which we have enjoyed in the recent past is unlikely to be restored.

The head of the FSA is reported as saying that the knock-on effects of the credit crunch will establish a revised way of working which will lead to markets behaving differently in the future.

Lenders are rapidly backing away from unsecured personal loans, and rates on secured loans and mortgages have seen a sharp hike.

This means people should be even more wary of the long-term outlook when financing through credit, as it could be far easier to fall into the debt-trap. The current culture of buying now and paying later (via credit cards etc) could land many people in trouble if this attitude to finance continues - it may be time to consider the older, wiser tradition of saving up for things before buying them!

Of course, that's not always an option. If you can't avoid having to seek credit, then it is vital to make sure you're getting the best personal loan arrangement possible in the current climate, and the smartest way to do this is by getting some professional advice from a loans expert.

Unless you're lucky enough to have been holidaying under a rock for a number of years, you'll have seen the hilariously patronising TV ads for 'picture loans'. You know, the one where the occasionally Geordie woman cheerily multi-tasks between household chores and a joyously easy phone call to borrow mountains of cash. Or the one where the bloke toes a footy around the lounge whilst giddily borrowing £25,000 (regularly voted most irritating ad on TV).

They were ordered by regulators to scrap the ad, as it was mis-representing the seriousness involved in taking out such a hefty personal loan.

The regulators' point is a fair one, although anyone watching who would have been persuaded to lend by the scenario is probably beyond the help of the Ad Standards Authority anyway! It would have been more commendable if they'd banned it simply for annoying people...

Borrowing money requires very serious consideration indeed, and the best way to be sure of getting the full advice and the best loan arrangement for your individual needs is to talk to a loans expert before making any agreement.

The start of a new year is always the time when we most think about getting things in order, particularly our finances. (Although, if you're anything like me, you'll still be getting around to 'actioning' those positive decisions you made at the start of 2008!) This trend is supported by research, recently carried out by Halifax Unsecured Personal Loans, which shows that January is the month in which the most unsecured personal loans are taken out.

The uptake of debt consolidation is also higher in January – the most popular month for this particular kind of loan

The head of Halifax Unsecured Personal Loans, Neil Chandler, is reported as saying, "For many people, the start of the year is a time to get personal finances in order – transferring debt from more expensive products such as store cards or other loans. Our research shows that this is certainly the case, with the number of loans taken out for debt consolidation increasing.

Using an unsecured personal loan for debt consolidation means you have just one fixed monthly payment for all your debts making it easier for people to manage their finances."

Some other interesting facts that came out of the research are that men are more likely to apply for debt consolidation than women - at any point in the year, and people aged 20-29 are most likely to seek a debt consolidation loan, with people aged 30-39 coming a close second.

The head of Halifax Unsecured Personal Loans also says, "We have seen more and more people choosing to organise their finances by either comparing or applying online. Typically, an online application takes less than 10 minutes to complete and can be done at any time of the day. This convenience and greater access to the internet means that this trend is set to continue."

The man talks sense - an online loan application is by far the easiest and most efficient way to get a no-obligation loan quote that will best suit your individual circumstances.

A recent report claims that UK borrowers could be paying way more than they should be, due to some lenders pushing up interest rates far higher than the Bank of England base rate rises over the past year. Despite interest rates being reduced last December, there were five increases between August 06 and July 07, taking the base rate up to 5.75% before it was eventually reduced to 5.5% by the end of 2007.

However, according to the report, some lenders are guilty of hiking up rates over and above the base rate rises since November 06. This means some customers have been subjected to interest rises far in excess of the base rate. The report claims that those borrowing in the region of £3,000 would be most affected, with average rises of 2.5% since November 06.

It is usually true that the more you borrow, the lower the interest rate, but the report claims that even people borrowing large sums have been severely affected.

As the cost of living continues to rise, the obvious choice for those feeling the financial squeeze can be to take out a personal loan to make up the shortfall. But as this report emphasises, it's always best to be fully informed and aware of the overall cost when taking out a loan to consolidate debts or make a significant purchase.

By taking note of some simple tips, you can ensure that home loan re-financing will be successful and achieve your aims: lower monthly payments, lower interest and better loan terms, with the potential of becoming debt-free quicker.

Get Everything in Order First

To get approval for your re-finance home loan on the best possible terms, you should first ensure that you make yourself as eligible as possible for approval. You should get a copy of your credit report, if you don't already have one, and check your credit history for inconsistencies. If you discover any negative points on the report that you feel should be corrected, you should contact the credit agencies straight away and have the details corrected. A statutory credit report by post should cost you £2 - there are three main credit reference agencies in the UK (Callcredit, Equifax and Experian).

You should also have the required documentation ready. You're likely to be asked for proof of income. This will be copies of your wage slips, if you are employed, or suitable tax and accounting documents for the self-employed. If you are neither of these, don't assume you are ineligible - lenders will still consider your application and may require other forms of income proof (eg disability benefit).

You will always need to check with the specific lender which sources they require for approval and what they will accept as proof, as this can vary. But having this documentation to hand to begin with will make the process much easier.

Contact The Lenders

Re-financing is basically swapping a current loan for a new one with better terms. With this being the aim, you should consider as many different lenders as possible and compare loan quotes from all of them, paying particular attention to their interest rates and loan terms, looking out for any hidden charges. This can be a lengthy process, if done the old-fashioned way, so it's wise to save a great deal of time and effort by contacting a personal loans finder who will be able to do a full search of the current market and find the best deal for you.

There are many different mortgage loans out there to choose from, so consulting a loans expert is the best way to ensure that you are well-informed before you make a decision. Whatever you do, don't enter into any loan agreement without fully exploring your options, as the results could be seriously damaging to your finances.

Amid talk of recession and fluctuating share prices, many people will be concerned by the Bank of England’s warning that our economy faces its toughest challenge in over ten years.

Whilst UK borrowers are unlikely to see the hefty current US interest rate drops, property loans look set to get cheaper, with fixed deals already dropping.

In this uncertain period, it’s vital to take control of your financial situation, and top of the list has to be cutting significant outgoings off your mortgage bills.

Interest rates are widely expected to move from 5.5% to 5% after 2 further reductions this year, with the cost of fixed rate loans dropping to reflect expected lower costs.

Abbey, Cheltenham & Gloucester, First Active, Halifax and Nationwide all increased their tracker rates or lowered their fixed rates last week in expectation of the falls to come.

Of course, fixed rate loans could continue to drop even lower, so the gamble for the borrower is whether to be tied into today’s attractive rates or hold out for a better deal.

Some of the best deals are being snapped up as soon as they emerge – for example, Bristol & West recently introduced some good deals which were so in demand that they had to be withdrawn just days later. So it can be a full-time job trying to run around keeping up with the best deals.

Luckily, this IS the full-time job of our expert financial advisers who can save you the legwork and chat through your personal circumstances to ensure they only give the financial advice that is right for you.

Talk to us today by calling 0844 560 7703 or visit the Personal Loans Made Easy home page.

Okay, it's got nothing to do with May (although it 'may' have in a few months...) I just couldn't resist the pun! Why not break with tradition by talking about financial matters AND having some fun? Anyway, onto the facts...

Alistair Darling, Chancellor of the Exchequer, is reported as saying that the Bank of England has "room for manoeuvre" on UK interest rates if necessary to stabilise the slowing economy.

He is quoted as saying, "Because we now have low unemployment, we've got historically low inflation, low levels of interest rates and mortgage rates, the Monetary Policy Committee has room for manoeuvre. As the (Bank of England) governor said in his speech in Bristol a few days ago, that wasn't available to them 15 years ago".

Mr Darling's comments could be taken by the markets as added pressure on the Bank of England to lower the cost of borrowing, despite inflation remaining a significant concern.

It is generally expected that the Bank of England will lower interest rates to 5.25 per cent next month, but will not necessarily go any further in a hurry. The quarter per cent reduction last December saw the first UK rate-cut in over two years.

Amid much recent hype about the likelihood of the US economical situation spreading quickly throughout Europe, Mr Darling highlighted the fact that the situation in the US is very different to ours in the UK and most other economies in Europe.

So, after the usual panic reaction whipped up by the good old British media, it seems the US situation may not be as influential as we've all been lead to believe. If you're looking for some real, human advice from a loans expert who has the time and inclination to keep on top of the complexities of financial forecasting (let's face it, if it's not your field of interest it can be a major headache!) then just give us a call on 0844 560 7703 or visit the Personal Loans Made Easy web site, where you can be safe in the knowledge that we've already done all the hard work to bring you the best deals and advice available...

...then get on with doing what YOU'RE best at!

UK interest rates seemed only to rise during 2007, with the best personal loan deals being around the 6.5%-7% mark by the end of the year.

However, things are looking up for 2008 - we're only a couple of weeks in and several loan rates have already been reduced by up to 3%. This, combined with January being typically difficult, financially speaking, makes it a good time to consider debt consolidation and take advantage of these low rates.

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