First Direct Loans
Whether you’re looking for a loan to purchase a big ticket item or are considering debt consolidation you might have been looking into if First Direct loans were right for you.
First Direct loans are personal or ‘unsecured’ loans, this means you do not use your home or other property as security on your loan. You can borrow between £1,000 and £25,000 in £50 increments with First Direct loans and you have the option of repayment terms between 12 and 84 months.
The actual amount First Direct will be willing to loan as with any other lender is dependent to your individual circumstances; credit checks and assessment of your financial circumstances.
Taking out any kind of loan is a long time commitment usually taking years to fully pay off. You therefore want to ensure you are getting the best loan you can to suit your deals. You can use the calculator on this website to compare over 200 different loans from over 20 different providers, to help you see what the different options for you are.
Alternative to First Direct loans
If you are a homeowner and wish to borrow a larger amount that £25,000 a homeowner loan might be a choice better for you. Because you put your home as security on the loan lenders are willing to lend more, usually up to £250,000. The exact amount you can borrow is dependent on the value of your home and how much equity you have if you have a mortgage as well as other factors such as how much you earn and if you currently have any other debts or financial commitments
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.
As taking out a loan is an important decision you should think if you have any other options before taking one out. If you have any savings it might be beneficial to use these instead, it may be that the interest you pay on a loan will be higher than any interest you earn in your savings.
Other things to think about
It is also important to consider if you are thinking of taking out alone to consolidate debt that spreading your payments over a longer term means you may ultimately be paying more overall than with your existing arrangements, even if the interest rate on this new loan is less than the rates you have at the moment.
There are other types of borrowing than personal and home owner loans such as authorised overdrafts and credit cards you might wish to consider.