Post Office Loans
Whether you want to buy a big ticket item like a new car or you want to consolidate existing debt you might have been wondering if a post office personal loan is right for you.
Post Office loans are not currently available but may be shortly.
The Post Office claims its new loans will feature:
- Competitive interest rates
- A wide choice of amounts to borrow
- Flexibility in arrangement of repayments
If you already have a Post Office loan you can contact them to find out more information about your account.
Although Post Office Loans are not currently available at the moment there are still many other lenders with a wide range of financial products. You can use the comparison tool on this website to compare loans from different providers, to help you see what may currently be available to you.
Also known as unsecured loans are a type of loan that typically allows you to borrow up to £25,000. Generally speaking the larger amount you wish to borrow the lower the rate of interest, however this does not mean you should take out a larger loan you cannot afford to service or repay.
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, your actual interest rate will be dependent on numerous factors such as how much you earn and your credit history, they will also take this into consideration when they evaluate how much they are actually willing to lend you.
If you want to borrow a larger amount of money and you own property then a homeowner loan might be better for you. This type of loan requires you to put up an asset (such as your home or other property) as security. Because of this added level of security banks are normally willing to lend more, usually up to £250,000. The actual amount you can borrow is dependent on the value of your home and how much equity you have if you have a mortgage.
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.
Things to think about
Before you take out any kind of loan you should consider alternatives first to fully evaluate what may be the best choice for you. For example If you have any savings it may be better to use them as the interest you repay on a loan may be higher than interest you earn from your savings.
There are also other types of borrowing such as authorised overdrafts and credit cards you might wish to consider.
Also if you are thinking of taking out a loan to consolidate debt understand that spreading your payments over a longer term could mean you ultimately pay more overall than you would with your existing arrangements, even if the interest rate on the new loan is less than the rates you have at the moment.