One thing which is quite important to many people when taking out a secured loan is whether or not they have payment protection. Now generally loans of up to GBP 25,000 are automatically covered by the Consumer Credit Act 1974 which is fairly strict about lending and who creditors can lend to. If you plan to get a loan of over GBP 25,000 however, you will not be covered. So what are your options if you are getting a fairly large loan amount?
Payment Protection for Over GBP 25,000
If you are planning on borrowing over GBP 25,000 there is still a payment protection option available to you. However, many people do not usually take these out as they see them as being too expensive. There is always the thought of “What if I don’t need it and I am paying out all of this extra money?” Well, if you think like that one thing to keep in mind is that yes you might be paying extra money, but then you are secure in case anything does happen.
If you miss your payments on a secured loan for whatever reason your home can be repossessed. That way you would end up homeless and there would be nothing that you can do about it. However, if you have payment protection, depending upon the company you lend from, it will often cover things such as unemployment as well as other things which may go wrong. Life is full of surprises and anything can happen so it is always better to be safe than sorry. Also, often the extra expense for the payment protection is often added onto the loan so that you don’t really notice the extra money.
As with most things, it is always better to shop around and find the best payment protection plan to suit you. Every single plan will be different so take the time to look around at various companies and see which offer the best policies. Compare at least five different plans to get the best idea of what is available and make sure that the plan that you eventually choose is the right one for you. Ensure that it covers everything that you will need and never agree to anything before knowing what you are letting yourself in for. Secured loans are serious and so you need to be sensible with the payment protection.
Overall shop around and don’t be too quick to turn down the payment protection. You never know what might happen so it is better to take out a policy just in case.
If you want to be more flexible with your mortgage repayments, you may want to choose this kind of mortgage. Virgin Money is currently working with One Account for that. There are a lot of ways on how you can reduce your loan costs. These include opening one account for both your salary and savings. Any amount that you are going to place there will be automatically deducted to your mortgage. This way, you can reduce your interest rates immediately. There is also no need for you to continuously monitor your mortgage repayments. You just need to deposit, and everything is already taken care of for you.
Personal Loan. Virgin Money works with Your Personal Loan to ensure that you can avail of a low APR loan. This is also an unsecured loan, which means you do not need to offer any collateral just to get your loan approved. The APR rate is at 7.8 percent, which is one of the lowest in the market these days. It will also be the same rate applied whether you are borrowing £5,000 or £25,000. You can also have more flexibility as to how long you want to repay your Virgin loans. You can have it in a year’s time or as long as 7 years. The processing of your application is very fast. This way, you will be able to use the funds immediately for your needs. The application form is right at their website.
Secured Loans. You can also get secured loans where you can avail of longer payment terms. In fact, the loan is payable for more than 25 years. The amount of cash that you can obtain is also very huge, as high as £100,000. All you need to do is to present anything that will act as your collateral. If you have built equity in your home, you can use your security for a secured personal loan. Annual percentage rates can also be between 7.3 and 17.1 percent. Normally, though, you will only get to pay 10.1 percent or even less than that.
Nobody I know has ever been completely immune to cash crunches. No matter how good you are with your finances, you have to learn to cope with going flat broke mid-month. Going broke at the worst of times is something that every one of us has to learn to handle. Thank heavens that in this day and age we are able to get a hold of loans of all kinds to help us get through the difficult times.