Finding the right car can prove challenging enough and finding a suitable funding option is no easier. There are a number of different car loans available on the market in a range of different sizes, so if you’re looking to secure finance to pay for your car, you might be wondering what options are available to you. The most common ways in which people fund cars is either through a personal loan or a homeowner loan.
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.
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.
Homeowner Loans
If you are a homeowner and you want to borrow over £25,000 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
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.
Car Loan Calculator
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; or fill in our contact form to request a call back.