Loans Charges
It is important that you fully understand how much you will be paying for you loan – understanding APR can help you to do this and comparing providers using a loan calculator can help you get the best value deal. It is also important to look out for hidden charges such as a 24 hour loan transfer charge.
APR Explained
APR stands for annual percentage rate and it represents the sum total of charges that will be made on top of the capital that you will need to repay. These charges incorporate interest as well as any other charges such as administration costs and legal fees. There are statutory laws governing the way in which APR is calculated, so you can rely on APR as a reliable method of comparing and contrasting a number of different UK loan products on offer.
APR is charged in either one of two ways: fixed or variable. Fixed rates will remain the same for either an agreed period or the term of the loan whereas variable rates are subject to fluctuations in line with market changes. Fixed APR loans will initially appear to be more expensive than variable loan products, however, this is balanced by the security that the fixed APR offers the borrower.
Whilst APR is probably the best tool that you will have when deciding which UK loan is right for you, you must be sure to compare like with like. In order to get a true and fair picture, variable rates must be compared with variable rates, and fixed with fixed. Similarly, secured loan UK rates must be compared with other secured rates, and unsecured loan UK rates with unsecured rates. Variable rates will automatically appear to offer the best deal when compared against fixed rates, but this does not take into account the whole picture. Likewise, secured loan rates will always come off better when contrasted with unsecured loans. It is perhaps best to decide which type of loan is suited to you before you start comparing UK loans, and to research your area accordingly.
Loan Calculators
Whether you are looking for a personal loan a home loan or a car loan you need to make sure that you are getting a good deal from your lender and that any credit you sign up for is being offered to you at a good rate. You want to get a good deal on your loan whether it be for home improvements, a once in a lifetime trip around the globe or to help you son or daughter pay their tuition fees for university or college.
Loan Calculators are great tools and enable to work out your monthly repayments and how much you will pay for your loan in total. It is an excellent way to decide if you can really afford to take out a loan before you commit yourself. Loan calculators are simple to use and are a great way to compare the different levels of interest on offer from lenders to work out what deal will be best for you in the long term.
24 Hour Loan Transfer
Getting money to you instantly is often one of the ways that lenders can charge you extra fees. Many lenders will transfer funds to you directly by placing it into your account or sending you a check by courier. The charge for receiving your money within 24 hours however can often be between £20-£50 dependant on the lender. If you do not need your money within 24 hours – try and opt out of this service in order to save you money – the normal length to wait for personal loans is usually 3-5 days.
