Secured loans and guarantor loans are quite different, but First Choice Finance can help set you up with either, depending on which works out to be the one that you want and matches your goals.
A secured loan is quite a simple concept, you enter into a credit agreement with a loan provider much like a personal loan, however you give the lender extra security for their funds by allowing them to take a second charge on your property. This gives the lenders who do personal secured loans the ability to offer larger amounts from 3,000 to 100,000 pounds and offer longer terms. They can also consider cases where the borrower has adverse or poor credit. By virtue of the second charge being required the secured loan option is for homeowners and mortgage payers only.
By comparison, a guarantor loan is a way by which people who do not have property or do not want to use their property as security but are still able to offer the loan lender additional security and comfort in them being paid back by having a second person, who is financially independent from the would be borrower, agreeing to be party to the loan and meet the repayments if the initial loan applicant cannot pay. The guarantor can be a friend or family member, but not a spouse or child.
This person normally needs to be over 21, have a good credit history and be a homeowner or mortgage payer, although a guarantor loan isn`t secured on it. By being a co-signatory, they are obliged to pay the borrower`s deficit if they don`t meet their repayments.
Something else that varies between secured loans and guarantor loans is the level of interest you can expect to pay. Although all deals vary, guarantor loans generally have a higher APR as they do not offer as much security as a secured loan.
If you`re not sure about whether you want a secured loan or guarantor loan, or know what you want but want a free quotation then feel free to get in touch with First Choice Finance and we run through our options with you.
Any figures will be provided on a no-obligation basis, so to find out more visit firstchoicefinance.co.uk or by calling us on 0333 003 1505 or 0800 298 3000.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.
Have you got a bad credit rating or been declined finance in the past First Choice Finance have a selection of bad credit loans to suit many unique circumstance contact us and speak to one of our loan experts.