Which loans make sense if I need £10,000 and don't want to borrow against my home?
I've decided to borrow less and would like to get an unsecured loan.
a personal loan is really the only viable, and cheapest option.
it would be worth looking at slightly lower values though. sometimes the banks are crafty with rate changes and you might get a better loan rate by either looking at £9950 or £10050. having said that, the amount you are seeking is "average" so the most attractive rates will be in this price band.
do consider carefully before agreeing to loan protection, the banks have stopped offering this as widely as before, mainly due to mis-selling, but you might be able to take a broader income protection plan to safeguard more of your earnings rather than limiting you to the loan repayments.
choose your lender carefully and check their qualifying criteria before you apply. if you make too many applications in a short period you can be declined for making too many attempts as this will impact on your credit file - it makes you look desperate rather than resourcefully seeking the best deal. | 01.11.11 @ 13:08
I'm intrigued to know what you mean by 'borrow less'. If you mean that you want to consolidate existing card debts, for example, you will open yourself to the danger of taking a loan and running up your cards again, so ending in a more difficult position than now.
This course of action needs more thought than might be obvious, and would mean spreading your debts out over a longer period, and reducing your monthly outgoings, whether or not you are considering a personal or a secured loan.
If you are running into some possible debt issues, do confront them carefully, because the easiest solution is not necessarily the best for the long term; email me if you would like me to send you a personal budget calculator.
Your easiest bet, if available, would be to increase your mortgage. The rate would be more competitive than a personal loan, but spread over a longer period. As you don't want this, a personal loan is, as Darren says, the best bet - but if at all possible use a major bank and look carefully at the details and small print.
Finally, do raise the minimum that you need. Any extra will probably (if you are like most people!) be spent very quickly, but the debt created will hang over you for many years.
| 01.12.11 @ 17:17