£40000 Loan
£40,000 Loan
There are a variety of funding options available to those looking to take out a £40,000 loan.
The process of sifting through different loans and trying to figure out which loan is right for you can often be overwhelming.
Homeowner loans (secured loans), which sit behind your mortgage as a second charge, are typically the most popular loans among those taking out loans of £40,000.
How much does a £40000 loan cost
This will depend on your circumstances, but assuming you have an excellent credit score then you should qualify for a top of the market personal loan rate.
Example:
Borrow: £40,000
10 year term
Interest rate: 3.9%
Monthly repayments: £403.08
Total cost of credit: £8,369.87
Total loan repayment: £48,369.87
Calculations are based on the interest rate being fixed over the term and no repayments are missed.
Personal Loans
Unsecured personal loans are generally easier to obtain than other forms of financing. Due to the loan's unsecured nature, no collateral is required (such as your home).
Most banks and other lenders offer personal loans, and you can borrow between £1,000 and £25,000 over a relatively short period of time (compared to secured loans).
There are only a few lenders willing to offer £40,000 loans on an unsecured basis, since personal loans are typically smaller than secured loans. As a result, many borrowers look towards secured loans when looking to borrow loans of this size.
Secured Loan
Secured loans are loans that are secured by some asset or collateral (usually your home). In recent years, secured loans have become increasingly popular among home owners due to their lower interest rates.
In addition, secured loans are also viewed as more risky, as if you are unable to repay your loan, your home can be forfeited. When taking out larger amounts of money, homeowner loans are usually preferred.
The amount you can borrow, the rate of interest, and the term of the loan are likely to depend on your personal circumstances, market conditions, and the amount of equity you own in your home. Providing the loan is not illegal or for commercial purposes, secured loans can be used for almost anything.
Our services
Generally speaking, there is no right or wrong loan option to choose from when looking to take out a £40,000 loan. However, depending on your personal circumstances some options are likely to be more suitable for your needs than others.
Before committing to a loan we strongly recommend that you contact a loan broker who can evaluate your situation and provide you with unbiased, expert advice to make the right decision for you.