Secured loan - A secured loan means that you have to have an asset, for example a home or a car that the loan can be secured against. As a result, if you can’t repay the loan, the lender can then sell your asset to get their money back. However, you may be charged less interest on the loan.
Personal loan/Unsecured loans - The lender doesn’t require that your home or car is used to guarantee the loan, but legally you must still repay the loan. The lender can take court action against you to get their money back, and this could mean you losing your personal belongings or even your home.
Student loan - Student loans are loans offered to students to assist in payment of the costs of professional education, and must be paid back when the student is earning in excess of £15000.
Consolidated loan - The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. (Also know as debt consolidation.)
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