Posts tagged: interest rates

Buying a New Home Is No More a Distant Dream

money for homeEvery individual dreams of purchasing their own home. A safe place where they might want to raise a family, or look after their parents. While the rising cost of real estate often dissuades people from the task, it’s important to remember that with the help of a home loan, your dream home is no longer just a distant hope that won’t be fulfilled.

If you’re hoping to realise your ultimate dream of owning a home, let’s take a look at a few steps that will help you along your journey.

1. Get Your Priorities in Order

Before you even start looking for a house, it’s important that you understand what you’re looking for. Do you want a home that’s in the middle of the city where you work, or do you want something that’s a bit quieter and closer to your hometown? Think about whether you want a large house with a garden or park nearby, or if you’re content with a smaller home with a good view. Figure out what is most important for you to have in your home. This makes the selection process much easier.

2. Outline Your Budget

Whether you’re funding the house by yourself or applying for a loan, it’s important that you have an estimate of how much you can afford to spend on a home. Even if you do take out a loan, you’ll have to factor in the EMIs that you will have to repay into your monthly budget. For a better understanding of what you can afford every month, you can use an online home loan EMI calculator. Once you have your budget and priorities in order, you’ll be able to find a home that meets your needs.

3. Create a Shortlist

The house-hunting process is generally quite a long-drawn one. You may see several houses before you find one that you truly identify with. If you’re lucky, you may like a home the instant you walk in and see it. However, this isn’t always the case. Once you’ve seen a wide selection of houses, you should make a list of the ones that you would definitely consider buying. Then you can list out the pros and cons of each home before making your final decision.

4. Find Financing

Unless you’ve won the lottery or you’ve been saving incredibly well over the last few years, you’ll probably require a loan to cover the cost of your new home. There are a number of loan options available to you, and you will need to find one that fits your needs. Depending on your requirements, you could find a loan that offers higher financing, better interest rates, or quicker disbursals. You could also use a home loan calculator to find out the kind of EMIs you would be required to pay based on the interest rates being offered.

5. Budget for Your EMIs

Now that you’ve found your perfect home and got a loan to finance it, it’s a good idea to come up with a repayment plan. You may have to readjust your monthly budget to factor in your EMIs and curb your expenditure a little. Of course, it goes without saying that you should also ensure you put away some amount of your savings for any financial emergencies that may come your way.

With our 5 quick tips, you could soon be on your way to finding your dream home and settling down with your family. Remember, a home loan doesn’t have to be a burden, it could be the stepping stone that helps you achieve your dreams.

What Is The Future Of Loans?

loan futureThe technological revolution has been a serious point of interest for the lending industry. In the wake of mass digitisation and an increasing reliance on the Internet and connected technology for business purposes, many lenders (and borrowers) have found themselves wondering where lending will be and what the process will look like in the future.

Well, fear not: if you’re a borrower, then things are looking up for you. The future isn’t quite as rosy for traditional lenders, though; they’ll have to work harder to compete in an increasingly crowded market, and they’ll need to be able to battle online-only companies with significantly lower overheads and a more persuasive and desirable brand identity.

The first indication that the lending industry was changing as a result of an increasingly online-dominated landscape was arguably the peer-to-peer lending boom. The first P2P lending companies began appearing in the late 2000s, revolutionising the concept of money-lending by emphasising a more grassroots approach which favoured the relationship between consumers and companies rather than the transaction itself.

P2P lenders represent (in theory) a more transparent, more grounded industry with an increased focus on the consumer, which is why borrowers will be better off in the future. The Internet has already created a number of opportunities for companies to fill niches which were not previously filled by bigger companies.

These niches include more flexible student finance agreements, online-only mortgage lending which allows users to get a quote in minutes without a lengthy credit check process, and quick-turnaround lending which majorly threatens credit cards, among others. Put simply, the Internet has changed the landscape of loans and lending forever, and it’s not looking likely that this change will be reversed.

With that said, a large amount of the functionality and operation of loans looks likely to continue as normal, albeit with a decidedly more ethical spin. Let’s take payday loans as an example. Some negative press around certain payday loan lenders means that the public is more wary than ever about hidden terms and conditions; with scandal comes increased scrutiny.

Even though this is the case, the best payday loan lenders are unlikely to be fazed by this. A huge amount of payday lenders already carry out their business with near-total transparency and an emphasis on ethical treatment of their customers; problems begin when loan companies attempt to draw more money out of their customers than they have been honest about, and that’s just not something that a reputable payday loan company would ever want to do.

In a similar sense, the types of loans on offer to consumers are unlikely to change, although we’ll probably see more lending around bitcoin and cryptocurrency as the kinks in these systems are worked out and the security around them increases. Right now, the issue with lending cryptocurrency is that there’s no centralised authority, so there’s no way of absolutely guaranteeing the safety of cryptocurrency transactions. At the moment, the bitcoin lending process requires a huge amount of trust from both parties, so as these systems are refined and changed, expect to see this currency taking off in a big way in terms of lending.

Otherwise, the future of loans is, well, business as usual, as boring as it might sound (but boring is good when it comes to finance). As it stands, the vast majority of loans fall into four categories: secured loans, unsecured loans, short-term loans (payday loans) and peer-to-peer loans. There are other kinds, but these are the most common types of loan you’re likely to come across.

There’s just no reason why increasing digitization and cryptocurrency are likely to change this. Unsecured loans will still be offered to consumers, although the amounts are likely to change based on new developments in online technology and companies who are willing to trust their customers more. Secured loans will continue as long as people have property against which the loan can be secured.

Peer-to-peer lending looks like it is only going from strength to strength, although there will need to be tighter regulation and a closer eye on business practices going forward if it’s to maintain its current standing. Payday lending is unlikely to change as long as there are people who need money on a short-term basis, and with the recent rise of the gig economy, the number of people who require this service is only likely to increase. If the future of loans will change at all, it will likely be towards this more short-term lending system as people’s incomes are less certain in a majority self-employed economy (if that is indeed where we’re going as a society).

Weighing the Options: The Pros and Cons of Unsecured Personal Loans

personal money loansOften unexpected expenses come up in life, catching us unawares and unprepared. When that happens, it is good to have the option of a personal loan to turn to for financial assistance.

Personal loans come in two types: secured and unsecured. Secured loans are less common. They require you to hold something for collateral, such as a car title or property. If you default on your payments, your lender is legally able to take your personal secured property.

Unsecured loans are less strict and much easier to get approved for. They require no collateral to get approved. However, they have many drawbacks to them as well, and borrowers should always know the pros and cons of their loan terms before they sign for one.

Personal Loans: What Are They Good For?

If you prefer to leave your personal property safe and not use it as collateral, you have the option of an unsecured loan. These types of loans have an easier application process and quick turnaround on distribution of money. If you need cash fast in an emergency situation, you can apply for a personal loan.

Unsecured personal loans can be applied for online from the comfort of your own home, and many times your approval or denial can be obtained in minutes.

Borrower Beware: Know the Cons of an Unsecured Personal Loan

Although there is no collateral involved in an unsecured personal loan, if you do not make your payments the lender still has recourse to take against you. They may be able to place a lien on your assets to ensure they are paid before you can sell your property.

They also may be able to take you to court and sue you for what you owe, plus legal expenses. Your credit score will be severely impacted, and your wages may even be garnished depending on the terms of the settlement.

Another drawback to unsecured personal loans is that the amounts you can receive are much smaller than secured loans. This helps limit the lenders’ financial risk. If you do not pay the loan back, they are only out a small amount.

You can also expect the interest rates to be higher if you are using a lender that does not run your credit, or approves you even with poor or bad credit. This high interest rate will make your monthly payments larger.

The terms will also be more strict if you can’t make your payments. High late payment penalties or rises in the interest rate for payments not made on time are very common with unsecured personal loans.

Weigh Your Pros and Cons

Before you sign on the dotted line, read the terms carefully. Be sure that you really need the money that you are borrowing, and that the monthly repayment terms are within your budget. Know your consequences and be willing to accept them should you end up having to default on your payments.

If you are comfortable with the cons of a personal loan, they are there for you to help you get through this difficult financial time.

How to achieve the best rates for personal loans

personal money needsYou may utilize fixed-rate personal loans as an important debt consolidation tool. Such debt may include meeting some forthcoming expense or credit cards depicting higher rates. Your car or property can be used as collateral while financing a secured personal loan. On the contrary, there’s no need for collateral to back up an unsecured personal loan.

Check Out a Few Good tips to Achieve Better Rates:

Take a Look at Your Credit Score

You may achieve loans with a much lower rate of interest when you possess a higher credit score. Financial institutions don’t take any risks, but they wish to earn good returns on the money that they lend. You must assess your entire credit situation prior to applying for a loan. Your loan application stands a higher chance of being rejected if you aren’t aware of your risks. You must run your eyes through your credit report before even applying for your first quote. The three major credit reporting agencies can provide you with free copies of the same every year.

Improve the Current Credit Score

You must do all it takes to improve your credit score if it doesn’t look satisfactory in the report. Before you even set out on applying for a loan, you must get the errors rectified. You may not even recognize some of the errors like that those concerning unpaid accounts; these errors will certainly leave a strong impact on your credit score. They would even lower your chances of securing a personal loan with a lower interest rate. Likewise, you must also take care of all collection accounts and unpaid credit cards that yield a poor reflection on your report.

Do Some Smart Shopping

A credit inquiry is triggered by each loan application that you submit with a lender. Such an inquiry has an adverse effect on your credit score. Your credit score takes a major hit when you apply for multiple personal loans simultaneously. You must choose loans with credit standards that seem to be affordable for you. By visiting a lender’s website, you may easily find out the minimum credit score that you ought to have in order to submit your loan application with them.

Identify the Right Banks

Apart from a few online market-places, you may check out the prospect of obtaining a loan from banks wherein you already have a savings or checking account. If you’ve succeeded in establishing a long-term banking relationship through your first mortgage or deposits, they’re more likely to provide you with discounted rates or other great deals. Even by enabling your savings or checking accounts to allow an automated payment each month, you may achieve an extra discount.

Draw a Budget

You must check out your affordability before you even try to obtain the best rates. Prior to submitting your loan application, you must understand how much you should actually consider as a reasonable payment every month. Drawing the right budget plays a crucial role over here. You’re more likely to face a problem down the line if your budget gets stretched in order to meet your monthly payments. You don’t need to get over-stretched in order to achieve an inexpensive rate. Winding up more in terms of debt is the last thing that you’d want right now.

Mistakes To Prevent When Getting A Bridging Loan In Manchester

linking loansIn buying new properties, individuals eye bridging loans as their first option. This is especially applicable if they don’t have the required cash yet. Most of the home buyers choose to avail this type of loan because of the fast processing time compared with other loans that need longer waiting time. The best thing about bridging finance is that you can also use it for business purposes.

Bridging Loan for Business

A business can take full advantage of a bridging loan to ensure smooth-sailing business operations for a definite period. A specific business can avail this type of loan depending on the overall value of the business’ office and premises. The sum that will be loaned can be used to tide the company over a specific time. Acquiring the appropriate bridging loan for your business lets, you enjoy the benefits and advantages.

For instance, it can cost more compared with other loans if you commit these common mistakes in applying for fast bridging loans.

Unable to Clarify the Details of the Interest Rates

One of the most significant deciding factors, whether you’ll pursue a loan or not, is the interest rate. It can also determine how expensive and costly a loan can be. To avoid having a problem, don’t sign up for a loan that incurs a higher interest rate. It will surely be a burden that is hard to handle.

It’s best if you will canvas first for the best terms and most affordable loan for your business. You might think that you know how to calculate your interest rates, but most often you don’t. Before signing a contract, make sure that you can compute and double check for the interest that it’ll incur over the months or years of loan payment. Remember, the interest rate varies, and it could depend on how an individual or business handle their finances. The interest rate can be compounded over time if payments are delayed. If you came across a bridging finance provider, talk with their professional bridging loan broker to know the available options for you.

Unaware of Hidden Charges

When dealing with bridge financing, you need to consider the origination fees. Most lenders charge borrowers with charge origination fees which are deductible to the original loan amount. The cost can have a significant impact on the interest rate you are paying, depending on the amount of money borrowed. The concept is similar to ATM fees that seem like a very minimal amount but can cost you big over the long run.

When borrowing bridging loan fast processing and releasing, be aware of all the accompanying fees along with the capital infusion. These fees can include the application fees, contract fees, processing fees, and other kinds of fees set by the lender. Carefully consider your options to avoid unsettled and delayed payments.

Opportunity Cost as Real Cost

Most banks take up to half a month to review a loan application either by an individual or commercial. After approval, there is still a waiting time for the actual release of the fund for the loan.

Treat time as money. Look for reputable lenders who can move and process your application at the speed of today’s business. Choose a lender who can streamline the application process so you can spend your time on other important things.

Intangible Costs for Short Term Loan

In bridging loans, your loan amount and payment terms matter. Some companies that are in need of working capital are availing smaller amounts and paying it within a short period.

In this kind of situation, the interest rate is not that significant since the amount borrowed is small and paid back quickly, such sort of financing would not provide the substantial amortization costs that are accrued on loans accrued in the more extended payment period.

You Are Not Aware That You are Financing

Most financing errors happen without you realizing it. You should know that the situation wherein you are financing, so you will not be caught off guard of all the incurring fees during the repayment due date. Being aware will also help in preventing misconceptions and misunderstandings regarding your loan terms. Or better yet, talk to the best bridging loan broker who can enlighten you regarding all the technicalities of bridging finance.

Financing is essential not only to individuals but companies as well. To get the best out of it, one should understand the factors and considerations before pursuing a loan. Avoid making mistakes when dealing with finances to ensure that you’ll get the value you deserve for your loan needs. Are you decided to file bridging finance? Check out a bridging loan in Manchester and explore the options made available to you.