Bank Loans For Cars
Bank Loans for Cars
If you’re looking to buy a used or new car and do not have the money in savings for the purchase, you might be thinking about obtaining funding through a bank loan. Typically, banks tend to offer borrowers funding for the purpose of buying a car through two forms; homeowner loans and personal loans.
Homeowner Loans
If you are a homeowner with a less than perfect credit rating and you want to borrow capital to assist in the purchasing of a car, a homeowner or ‘secured’ loan may be an option for you. Unlike personal loans these require you to use an asset like your home as security on the loan; meaning failure to make repayments could mean your home being repossessed Because of this added security on the loan lenders are sometimes willing to loan more than they would be with a personal loan. Lenders of homeowner loans tend to be less strict as to what you spend the money on, which is why it is commonly used to fund a car purchase.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. If you are at all unsure of the suitability of a particular product for your circumstances you should seek independent financial advice.
Personal Loans
Personal loans, also known as 'unsecured loans' because you do not need to put up property as security on them, are usually available from £1,000 and up to amounts of £25,000 and can be repaid over variable numbers of years. Lenders tend to offer better rates of interest with large sums being borrowed, however you should not take out a loan you cannot afford the repayments on just because of this. Personal loans can come in a range of different forms, and many lenders offer special loan packages designed specifically for car purchases.
Lenders will advertise their personal loans with a Representative APR however this is not the amount you are guaranteed to get from taking out a loan with them. The actual interest rate you are offered may be influenced by your personal financial circumstances and history, these same criteria will also affect just how much a lender will be willing to loan you.
Finding bank loans for cars
Taking out a car loan is a big investment, which is why you should ensure that you have the capacity to afford the repayments. Whilst our car loan calculator can assist you in comparing over 200 different loans from over 20 different lenders, we still urge that you contact a mortgage broker to assist you.
We have a specialist secured loan advisory team, who can help you calculate the loan terms that you can comfortable afford. Additionally, our expert team can also compare a range of leading and exclusive car loan deals, to help find the ideal loan perfect for your personal circumstances.
If you have any questions or queries about calculating a secured loan, why not call us today on 0117 313 8872, for a free initial consultation.