Fixed-rate vs. adjustable-rate mortgages: which is right for you?
When it comes to securing a mortgage in the UK, one of the most significant decisions you’ll face is whether
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Will I qualify for a loan?
Most lenders have their own assessment criteria but ultimately whether or not you qualify for a loan will be determined by your personal details and credit history. To get a loan you must be at least 18 years old and be a UK resident. You will need to provide proof of your income and pass a credit check.
The higher your credit score, the more likely you are to qualify for a loan and it may also have an impact on the interest rate you’re offered. By answering a few questions on MoneySpider about the loan you are interested in, you’ll be provided with a tailored list to suit your needs.
Helpful tips for comparing loans
Circumstance
Before you apply for a loan, it’s very important you choose the right loan for your circumstances.
Eligibility
Check your eligibility on MoneySpider, it will save time and won’t affect your credit rating.
Affordability
Work out how much you can afford to borrow and if you can afford to pay it back.
Rates
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Fees
Watch out for any fees or charges, always check the small print.
Term
Work out how much time you need to repay the loan, extending the term reduces monthly repayments but could mean increased interest rates.
Types of loans
A secured loan also known as a homeowner loan is a loan which lenders secure against your property. They can be a way to borrow at competitive interest rates if you have bad credit. A secured loan may allow you to borrow more, pay it back over a longer period, or be more affordable.
But think carefully before securing debts against your home, if you don’t repay what you owe, the lenders could take the asset that your loan is secured against in order to recover their costs.
Personal loans are usually unsecured so you are not required to use your home, or car for example, as collateral, you simply pay back the money over a period of time with interest. You are limited on the amount you can borrow, usually up to £25,000 but some lenders will lend more.
If your credit score is low, or you’ve defaulted on previous debts, you might not be approved. Interest rates on your repayments can be higher on unsecured loans, but repayments are flexible with terms ranging from a few months to five years or more.
If you’ve struggled in the past with debts and your credit score is low, you may need to find a specialist lender. Alternatively, you could consider a secured loan, or a guarantor, a friend or relative who agrees to pay off the loan if you aren’t able to.
Your loan options may be limited but it is still possible to be approved for a loan. In fact, borrowing a small amount and making repayments on time can help rebuild your credit score.
What can I use a loan for?
You can use a loan for a variety of reasons, from home renovations to buying a new car, paying for your wedding or even that once in a lifetime holiday. You could also use it to simply help you deal with existing loans or debts.
Once you know which type of loan you need, MoneySpider can help find the right one for you.
FAQ
Need more help?
Will comparing loans affect my credit score?
You can compare loans as many times as you like with Money Spider without affecting your credit score.
How long does it take to apply?
Compare loans and apply online in a matter of minutes.
How much can I borrow?
The amount you’re eligible to borrow will depend on your personal circumstances.
How quickly can I get the money?
If approved the funds could be in your account within 24 hours, but some lenders may take up to 5 working days to transfer the money
Can I get a loan if I have bad credit?
If you don’t have a strong credit history, your options may be limited but it is still possible to be approved for a loan with the right provider.
What if I'm unable to pay off my loan?
If your circumstances change and you are struggling to pay off your loan, contact your lender who may be able to offer you flexibility.
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