Overview
of secured loans
How should loans be compared?
There are a number of factors to consider when applying for
a loan, however the most important factor is the
loan A.P.R.
What is a loan A.P.R?
The A.P.R. on a loan reflects the true cost of a loan to
you.
It takes into account the loan interest rate and any
additional charges making it easier to compare loans when
borrowing.
Can I insure
my payments?
Yes, you can insure your
payments so that you won't have to worry if you lose your
job or
are off work due to sickness
or an accident.
The additional monthly payment to insure
your loan is
minimal especially when you think of the piece of mind it
provides.
What if I want to pay the loan off early
If after taking out a loan you wish to repay the loan early
you will have to ask the lender for a redemption or early
settlement statement.
This will show how much you have to
pay to redeem the loan.
You will not (unless the loan only
has a few months to go) be required to pay all the loan
interest due over the remaining term.
The method for calculating the loan settlement figure varies
however for
loans up to £25,000 the maximum you will repay is calculated
using "the rule of 78".(this is a complex calculation
governed by the consumer credit act 1974).
Can I cancel the loan?
You are under no obligation whatsoever.
You can
cancel your loan application at any time up to completion
without cost or penalty.
Overview
of secured loans
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