For those looking to take out a £70,000 loan, there are a range of funding options available offered by a wide range of lenders.
Consequently, it can often be overwhelming sifting through different loans and trying to make sense of each option and finding the loan that’s right for you. Generally, the most popular loans amongst those taking out loans of £70,000 tend to be homeowner loans (secured loan) where the loan sits as a second charge behind your mortgage.
How much does a £70000 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.
10 year term
Interest rate: 3.9%
Monthly repayments: £705.39
Total cost of credit: £14,647.27
Total loan repayment: £84,647.27
Calculations are based on the interest rate being fixed over the term and no repayments are missed.
an unsecured personal loan tends to be more straightforward than other forms of finance. As the loan is unsecured, it does not require you to put an asset (such as your home) down as collateral against the loan.
Personal loans are offered by the majority of banks and other lenders, and you can typically expect to borrow between £1,000 and £25,000 over a relatively short period of time (in comparison to a secured loan). As personal loans tend to be considerably smaller than secured loans, there are only a select few lenders willing to offer £30,000 loans. As a result, many borrowers look towards secured loans when looking to borrow loans of this size.
A secured loan is a loan that is protected by an asset or collateral of some sort (usually your home). Secured loans have become popular amongst home owners as they usually offer lower interest rates than unsecured loans.
However, secured loans are also perceived as being a more risky method of gaining finance, as if you cannot keep up with repayments, there is the potential for you to lose your home. Homeowner loans are usually preferable when looking to take out larger amounts of money.
It is worth noting that the amount you can borrow, the rate of interest and the loan term is likely to depend on your personal circumstances, market conditions and the amount of equity that you own in your property. Secured loans can be used for an almost endless amount of possibilities providing it is not illegal or for commercial use.
Generally speaking, there is no right or wrong loan option to choose from when looking to take out a £70,000 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.