Personal Loans
Mortgage Choice can help you fulfil your wishlist with a personal loan suited to your needs.
What is a personal loan?
At Mortgage Choice, we understand there are special times in life when you could use a little extra cash for things like planning a wedding, taking a well-deserved holiday, completing some home renovations or giving the kids a high-quality education.
A personal loan is a short term loan of typically 5-7 years, often with interest rates higher than that of mortgages but lower than that of a credit card, offering a useful solution for those special projects. Also, because you are assessed based on your credit risk and experience, the turn around time for approval is usually much faster than that of a mortgage too.
At Mortgage Choice we do all the legwork by comparing multiple products from a range of lenders so that we track down competitively priced personal loans that let you achieve your goals.
Types of personal loans
If you are purchasing a major item such as a boat, or if you own one already, a lender may be willing to take it as a security for the loan. This could mean that you are entitled to a lower rate than that of an unsecured loan as the lender has a lower risk of loss if you fail to make your repayments. It can also mean that you have a higher chance of getting approved!
Your local Mortgage Choice broker can help you weigh up the pros and cons of a secured loan and help you decide what type of loan is right for your individual circumstances.
Unsecured loans are those that do not require you to own any assets to apply, whilst also giving you greater flexibility to use the funds as you wish. However, it is important to be aware that the interest rates are often higher than secured loans as the lenders perceive these loans to be a higher risk because you have nothing to fall back on if you can not make repayments.
There are many factors to consider when weighing up your options so be sure to always consult with your local broker about which loan is right for you.
Fixed vs Variable loans
Fixed rate loans
For those of us that like the security of knowing exactly how much our repayments will be over the lifetime of the loan, a fixed rate loan is the way to go. Fixed rate loans are exactly that, loans where the rate of interest is locked in and will not change, allowing you to easily budget and forecast your repayments.
Variable rate loans
On the flip side, variable rates can be subject to change and the interest can either increase or even decrease during the life of your loan. Variable rate loans can also be more flexible if you would like to repay your loan faster, as lenders may allow you to make extra repayments on the loan.
Everyone’s personal circumstances are different which is why your local broker can steer you in the right direction and find the right loan suited to your needs.
Reasons to get a personal loan
- Renovate your home: Whether you need some extra space for the kids or you just want to give your home a facelift, renovating your current home is often much cheaper than buying a new one.
- Consolidate your debt: If you are struggling to manage the debt on your credit cards, it might be worth your while to consolidate your debt into one personal loan at a lower interest rate. It also means that you are only focusing on one easy to manage payment.
- Help pay for a wedding: Weddings can be expensive, but that does not mean you should have to skimp on your big day. A personal loan can help make your wedding day one to remember.
- Take a holiday: Free up some extra funds for a much needed break and take the opportunity to travel the world.
- A new boat: If you want to set sail on a new boat but you are falling a bit short on funds, a personal loan may be able to put you within reach of your marine dreams.