Friday 27 July 2012

Long Term Loans

If you're after a long term loan there are several different ways to borrow your money. You could try a personal loan, a secured loan, or a re-mortgage. Here we will cover each option starting with the longest payback option.

A Re-mortgage

With this option it is possible to borrow money over a period of up to 40 years. It also allows you to choose if you want fixed rates or variable rates. As with all options you must take careful consideration when borrowing money over such a period. You can easily end up paying back well over 3 times the original amount of money you borrowed. The money is also secured on your property; meaning if you can't pay it back then the property could be repossessed.

A Secured Loan

You can borrow money over up to 25 years with a secured loan. This is again secured on your home. The APR is likely to be competitive, especially if you have an above average credit rating. Because of the credit crunch there are few lenders offering secured loans at the moment (in 2009). The most you can borrow is also likely to be £75000, whereas it used to be £100,000 before the crunch.

A Personal Loan

The maximum period you can borrow over with a personal loan is 5 years. So this might be pushing the boundaries of what you consider long term. But it's a good, quick way to borrow money at a great APR, typically only bettered by a mortgage. You can borrow up to £25,000 this way.

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