Taking a loan is a big decision, so before you make the commitment make sure that you can pay each monthly repayment without default for the length of the loan. Failing to meet the repayments may cause you to get a CCJ, put you house at risk and impair your credit score, making it difficult and more expensive to obtain credit in the future, such as for a remortgage. If you have any doubt about your capacity to consistently afford all the repayments it is not wise to apply for a loan commitment.
Looking for the cheapest lender?
There is no simple answer, it is in relation with your personal circumstances, your employment status, your annual income, the total amount of your existing loan, the size of the loan you require, your credit history and if you are homeowner or a tenant. The APR you will receive from the loan broker depends on your credit history and how much you can afford, plus your level of salary.
How much can we afford to pay per month ?
Those who want to borrow should estimate how much spare disposible income they can manage on after paying their bills, also including any planned expenses such as summer holidays. On the money left you should not have to allocate more than 50% to make the monthly loan repayment. if you are unsure look for financial advice from an accountant.
What amount can we obtain ?
Loans are subject to criteria and credit rating defined by the lender. The sum you can be offered depends on the loan provider and can vary from lender to lender. |