Secured Loans Rate UK
What you see isn't necessarily what you'll get
When they advertise their secured loans rate UK lenders will quote a typical APR, which is the rate offered to most customers. However even if you qualify for the advertised rate, most secured loan rates are variable – which means that if interest rates rise, so will your repayments.
When they advertise their secured loans rate UK lenders tend to publish their typical APR, which is the interest rate they offer to Mr and Mrs Average. If your credit rating isn't perfect or if you're borrowing a relatively small amount of money, the APR is likely to be higher; if you choose a lender whose selling point is that they'll lend money to people with credit problems, the interest rates are likely to be higher still. Nationwide is currently offering secured loans at 6.6% APR; bad credit lenders are charging APRs of 18.9% and higher.
Another thing to consider is that when they advertise a secured loans rate UK lenders are quoting a variable rate, which means that if the Bank of England base rate increases then so will your repayments. The base rate was increased slightly in 2003 and finance experts believe that more rises are likely in 2004, so it's a very good idea to use a loan calculator to work out what your repayments would be if interest rates were to rise by 1% this year. That way you can be confident that should interest rates rise, you won't end up facing a financial crisis.
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