Low Rate Loans
Low rate loans are available from our market leading lenders and
the one you choose will depend on how well they satisfy your
particular requirements. One way to get the most competitive low
rate loans is to look at the loans that offer the lowest APRs or
Annual Percentage Rates. This is usually a good indication but
should be considered along with the type of interest rate you
are being quoted. Firstly, a typical interest rate is only an
indication of the rate you may be offered as it is the average
rate that over 50% of applicants receive. You will be offered an
exact rate from the lender for low rate loans once your specific
circumstances, the amount you wish to loan and the length of
time you'll need to pay back the loan has been considered. When
a lender refers to a set rate then this is the rate offered to
all successful applicants regardless of their credit history,
loan amount or term.
Generally speaking, secured loans are low rate loans which will
have the most competitive interest rates. This is because when
you bet your home that you will repay the money borrowed; the
lending company is taking a much lower risk lending you money.
If you fail to meet your repayments and don't pay back the loan
then you will be putting your home at risk of repossession. The
lower risk is reflected in the lower interest rates charged by
lenders. In the case of unsecured loans, there is no requirement
to secure the loan with your home and this means that the lender
is taking on a higher risk. The lender compensates for this by
charging you a higher interest rate. Unsecured low rate loans
are usually processed quicker than secured low rate loans but it
is important to make sure that you can comfortably afford the
repayments as creditors have been known to act very aggressively
in order to protect their money.
Low rate loans could be the answer for you if you are finding it
difficult to meet your monthly debt repayments on credit cards,
store cards or other loans. A debt consolidation loan could
enable you to reduce your monthly payments but you will probably
be paying back the loan for a much longer period. Another
advantage is that you could find that you are under less
pressure with just one creditor instead of many and this can
also simplify your monthly budgeting. It is a good idea to take
a look at your income and expenditure and the amount you owe and
then work out a budget which also takes emergencies into
consideration.
Another factor to consider with low rate loans is your method of
application. Lenders can offer different APRs for telephone or
postal applications with the lowest APRs for online
applications. The reason for this is that when applying online
the overheads to the lender are lower and this saving is passed
on to you.
APRs are a major consideration when looking for low rate loans
but you should also be aware that some lenders charge an early
settlement fee or redemption penalty for loans which are paid
off before the agreed end date. This could be up to two months
interest which is why it is wise to consider whether you would
rather pay a slightly higher interest rate but with no
settlement clause. It is also important to check whether the
lender is quoting you a fixed interest rate (remains constant
throughout the term of the loan) or a variable interest rate
(can fluctuate with changes in the bank base rate).