Thursday, August 2, 2007

A Brief History of Loans

Banking loan:
Luckily, legitimate banks were developing even as indentured servitude was rampant. Individuals known as moneylenders played an important part in the history of loans… in fact, it's from the Italian moneylenders of the Middle Ages that we get both the English words “bank” and “bankrupt” that we use today.

Italian moneylenders would set up benches in the local marketplace (with the word for bench being “banca”, from which we eventually derived the word “bank”). The moneylenders would charge interest on their loans at a rate that they set, and would sometimes be quite successful and become very wealthy.

As an interesting sidenote to the history of loans, if the moneylenders were not successful, though, they would break up their benches and pursue other venues. The Latin expression for breaking up a bench in this way was “banca rupta”, which eventually became the English word “bankrupt” (which carries a much steeper connotation than simply a broken bench.)

Business Loan:
A business loan is designed for a wide range of small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. Business loans are generally available from £50,000 to £1,000,000 at highly competitive interest rates from leading commercial loan lenders. A business loan can be secured by all types of UK business property, commercial and residential properties. Business Loans can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status and length of term. Business loans are normally offered on Freehold and long Leasehold properties with Bricks and Mortar valuations required. Legal and valuation fees are payable by the client.

Personal Loan:
There are two categories of personal loans: secured personal loans and unsecured personal loans – See individual titles below. Homeowners can apply for a Secured personal loan (using their property as security), whereas tenants only have the option of an unsecured personal loan.

Secured Personal Loan:
A secured personal loan is the generic term for a loan. A secured personal loan is when you take out a loan that is secured on your property. A secured personal loan is secured against your home to act as security to the lender for the money you have borrowed. A secured personal loan is often referred to as a homeowner loan. Secured personal loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount. The property you own is valued and the lender can then decide how much they are willing to loan you. A secured personal loan can sometimes be the best option if you are looking for lower rates of interest, longer repayment lengths and own your home.

Unsecured Personal Loan:
An Unsecured personal loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments. The amount you are able to borrow can start from as little as £500 and go up to £25,000. The repayment period will range from anywhere between six months and ten years.

An Unsecured personal loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. An Unsecured personal loan is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation. A Guide to Personal Loans:Personal loans can be lifesavers, providing you with much-needed financial assistance at the most opportune times. Not everyone really understands personal loans, however, and that can sometimes lead to problems in finding the best deals for personal loans that an individual is eligible for.

With a little bit of thought given to personal loans before applying, it's possible to save both time and money in the long run… it's mostly a matter of shopping around for the best loan and taking advantage of the lending options that are available.

Bad Credit Personal Loan:
A Bad Credit Personal Loan is a loan designed for the many people with a bad credit rating. However created, your past record of County Court Judgements, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal. If you are a home owner with equity in your property, a Bad Credit Personal Loan can bring that normality back to your life. Secured on your home, a Bad Credit Personal Loan can give you the freedom, for example, to do the home improvements or buy the new car you really wanted. With a Bad Credit Personal Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases.

Car Loan:
The main types of car loans available are Hire Purchase and Manufacturer’s schemes. Hire purchase car finance is arranged by car dealerships, and effectively means that you are hiring the car from the dealer until the final payment on the loan has been paid, when ownership of the vehicle is transferred to you. A Manufacturers' scheme is a type of loan that is put together and advertised by the car manufacturer and can be arranged directly with them or through a local car dealership. You will not be the owner of the vehicle until you have repaid the loan in full, and the car will be repossessed if you default on repayments.

Home Loan:
A Home Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home loan. The loan can be used for any purpose, and is available to anyone who owns their home. Home loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation. With a Home Loan you can borrow from £5,000 to £75,000.

Home Improvement Loan:
A Home Improvement Loan is a low interest loan secured on your property. With a Home Improvement Loan you can borrow from £5,000 to £75,000 with low monthly repayments. The loan can be repaid over any term between 5 and 25 years, depending on your available income and the amount of equity in the property that is to provide the security for the loan. A Home Improvement Loan can help you with a new kitchen, bathroom, extension, loft conversion, conservatory, landscaping your garden or new furniture. You can even use it on non-house expenditure like a new car or repaying credit card or other debts.

Home Owner Loan:
A Home Owner Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home Owner loan. The loan can be used for any purpose, and is available to anyone who owns their home. Home owner loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation. With a Home Owner Loan you can borrow from £5,000 to £75,000.

Debt Consolidation Loan:
Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest. Secured on your home debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment – one calculated to be well within your means. With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases. It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.

Cash Loan:
Cash Loans also known as Payday Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds. A Cash Loan can assist you in this situation with short term loans of between £80 and £400. Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a Cash Loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.

Payday Loan:
Payday Loans also known as Cash Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds. A Payday Loan can assist you in this situation with short term loans of between £80 and £400. Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.

Mortgage Loan:
Mortgage loans are readily available to homebuyers wanting to purchase a home and mortgages are available through several different lending agencies. Mortgage loans are now being promoted online with the Internet, as the Internet has brought a broad market of mortgages into an individual's choices in mortgage loans. There are different mortgage loans with different terms and interest rates, and finding the right mortgage loan for you and your family can take some time, but with the vast amount of information online, consumers can easily access the current interest rates and find the best mortgage loans for their individual circumstances. There are mortgage loans today that are designed to practically custom fit homebuyers.

Secured Loan:
A secured loan is simply a loan that uses your home as security against the loan. Secured loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years. You simply select a monthly payment that fits in your current circumstances.

Unsecured Loan:
An unsecured loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments. The amount you are able to borrow can start from as little as £500 and go up to £25,000. Because you not securing the money you are borrowing, lenders tend to limit the value of unsecured loans to £25,000. The repayment period will range from anywhere between six months and ten years. Unsecured loans are offered by traditional financial institutions like building societies and banks but also recently by the larger supermarkets chains. An unsecured loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. An unsecured loan is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.


Bridging Loan:
A bridging loan as the name implies is a loan used to “bridge” the financial gap between monies required for your new property completion prior to your existing property having been sold. Bridging loans are short term loans arranged when you need to purchase a house but are unable to arrange the mortgage for some reason, such as there is a delay in selling your existing property. The beauty of bridging loans is that a bridging loan can be used to cover the financial gap when buying one property before the existing one is sold A bridging loan can also be used to raise capital pending the sale of a property. Bridging loans can be arranged for any sum between £25000 to a few million pounds and can be borrowed for periods from a week to up to six months. A bridging loan is similar to a mortgage where the amount borrowed is secured on your home but the advantage of a mortgage is that it attracts a much lower interest rate. While bridging loans are convenient the interest rates can be very high.

Student Loan:
A student loan is way of borrowing money to help with the cost of your higher education. Applications are made through your Local Education Authority. A student loan is a way of receiving money to help with your living costs when you're in higher education. You start paying back the loan once you have finished studying, provided your income has reached a certain level.

Tenant Loan:
A tenant loan is an unsecured loan granted to those that do not own their own property. A tenant loan is always unsecured because in most cases, if you are renting your accommodation, you do not have an asset against which you can secure your loan. Tenants sometimes find that some loan companies will only lend money to homeowners. If you are a tenant you need to look for a company, bank or building society willing to give you an unsecured loan.

Finding the Best Loans:
When looking for the best personal loans, it's generally a good idea to start looking with banks that you've had dealings with in the past and work your way out from there. Request loan quotes from your current bank as well as any other banks that you've had accounts or loans with previously, and then move on to new banks and get quotes from them as well.

From there you should move to finance companies and other businesses that deal exclusively in lending, and also should examine the loan terms and request quotes from several online lenders which can actually offer competitive of not better interest rates with sufficient equity to serve as collateral.

Once you've gotten several quotes from a variety of lenders, compare the various offers to decide upon the loan offers that are best for your needs and what you can afford… the time that you spend now shopping for a loan will likely result in great savings for you down the line.