Secured loans and guarantor loans are quite different, but First Choice Finance can help set you up with either, depending on which works out to be the one that you want and matches your goals.
A secured loan is quite a simple concept, you enter into a credit agreement with a loan provider much like a personal loan, however you give the lender extra security for their funds by allowing them to take a second charge on your property. This gives the lenders who do personal secured loans the ability to offer larger amounts from 3,000 to 100,000 pounds and offer longer terms. They can also consider cases where the borrower has adverse or poor credit. By virtue of the second charge being required the secured loan option is for homeowners and mortgage payers only.
By comparison, a guarantor loan is a way by which people who do not have property or do not want to use their property as security but are still able to offer the loan lender additional security and comfort in them being paid back by having a second person, who is financially independent from the would be borrower, agreeing to be party to the loan and meet the repayments if the initial loan applicant cannot pay. The guarantor can be a friend or family member, but not a spouse or child.
This person normally needs to be over 21, have a good credit history and be a homeowner or mortgage payer, although a guarantor loan isn`t secured on it. By being a co-signatory, they are obliged to pay the borrower`s deficit if they don`t meet their repayments.
Something else that varies between secured loans and guarantor loans is the level of interest you can expect to pay. Although all deals vary, guarantor loans generally have a higher APR as they do not offer as much security as a secured loan.
If you`re not sure about whether you want a secured loan or guarantor loan, or know what you want but want a free quotation then feel free to get in touch with First Choice Finance and we run through our options with you.
Any figures will be provided on a no-obligation basis, so to find out more visit firstchoicefinance.co.uk or by calling us on 0333 003 1505 or 0800 298 3000.
Unsecured Personal Loans
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Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014-2018.