| Get an unsecured loan?
Unsecured personal loans are granted on a mixture of factors, the most important are your income and employment status and your credit history. The interest rates available vary widely depending on how much you borrow and the time period over which you pay it back. Most advertised rates are typical rates and so, if you only wish to borrow small amounts, you will normally be charged a higher rate than that advertised. Unsecured loans are only available for sums of 25,000 or less. Click here for more on interest rates. To get the very cheapest unsecured loan rates you will need to have a good credit history. Click here to find out more about credit ratings. .
125 per cent mortgage welcomed by consumer website
A leading consumer website has welcomed Alliance & Leicester's decision to launch a 125 per cent mortgage, saying that it will help first-time buyers get on the property ladder.Recently, Alliance & Leicester said that it would offer people a 125 per cent PlusMortgage, which combines a mortgage with an unsecured personal loan.While Citizens Advice Bureau and the National Debtline have criticised the lender for offering people a deal that means that are reduced to negative equity from the start, moneysupermarket.com has welcomed the move."I believe A&L is acting with full responsibility in bringing this product to market," said Louise Cuming, the head of mortgages at the price comparison website."It's not surprising to see another lender join the 100 per cent plus market when first-time buyers continue to find it increasingly tough to get a foot on the housing ladder."Ms Cuming explained that the deal was not encouraging people to take on more debt that was appropriate, as it will "be sold via brokers and therefore borrowers can only access [the mortgage deal] after a stringent advice process."She added: "A&L is only targeting people with the propensity to take on this large amount of debt – and, in fact, lenders have historically seen lower percentage arrears in the 100 per cent plus market versus the 95 per cent sector."A recent report from Nationwide suggested that first-time buyers now have to spend £120 a month more to pay for their mortgage than they did a year ago.
Getting the cheapest car loan
The launch of the new 2007 number plates has seen thousands of Britons buy new cars, but many of these could be paying too much by using expensive car loans. This month it is predicted about 400,000 people will buy a car, with many of them needing a car finance package to complete the deal. And with this in mind, financial advice service Moneyextra.com has produced a guide to getting the best value car loans. The most popular type of forecourt finance is currently hire purchase – where the loan is secured against the car you are buying. This is often offered by car dealerships themselves, but means the car is not owned until the final payment has been made. And it is expensive. Average interest rates for hire-purchase schemes are in double digits, whereas personal loans are currently available for less than six per cent.
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