Getting your own windfall

Postal worker Angela Cunnigham is now the Postess with the Mostest after scooping a stunning £35 million on the Euro lottery.

The lucky Glaswegian only realised she’d landed the jackpot when she returned from holiday, three days after the draw was made.

Previously earning £16,000 at Glasgow’s sorting office; Angela’s lifestyle is set to undergo a pretty dramatic transformation as she tries to work out what to do with all the money.

Although we may all not be as lucky as Angela we should all be thinking about how our own finances are shaping up. And for those of use who could use some extra cash MoneyExpert has some information on understanding loans and makes some recommendations on the market leaders.

Essentially, there are two types of loan: the personal or unsecured loan, and the secured loan, often known as a home-owner loan.

Personal Loans

Personal loans are a great way of getting your hands a large sum of money, for things like debt consolidation, a holiday abroad, or some work to your house. You generally won’t be able to borrow as much as with a secured loan but you won’t need to have any major assets and won’t need to risk loosing them if you do. Most providers are flexible with the amount that they’ll offer; it can range from £500 to £25,000.

The flexibility of these loans doesn’t stop with the size. You’ll be able to arrange to pay it back over several years, or a few months depending on what works best for you. One thing to factor in however, is early redemption charges. These are fines that some loan companies will impose if you repay the loan early and end up saving money on interest payments.

Interest rates on personal loans are fixed, meaning you’ll know exactly what you will have to pay back each month. Rates can vary however, so although it sounds obvious it’s always worth taking time to look for the best rate offer and then calculating how much the loan will cost you each month. Nine per cent or less is a good rule of thumb.

Additionally, beware of chasing loans you are unlikely to get, as getting rejected can be marked down on your credit history and this may affect the rates you will be offered in the future.

In terms of the best loan out there you won’t go too far wrong with any of the following, all of which have very competitive APRs, making them extremely affordable.

At the moment the most competitive deals on a £5000 loan over three years are:

Provider Typical APR (fixed) (homeowners only) 6.3%
Moneyback Bank 6.3%
GE Money 6.9%

No credit checks, no obligation – compare personal / unsecured loans free in minutes with MoneyExpert today. Click here to compare now.

Secured Loans

Secured loans are those offered relying on the security of your home or other assets. Consequently they have some real advantages over unsecured personal loans. They tend to be offered at a more competitive rate and can generally be paid back over a longer period, making the monthly repayments more manageable. You are also able to borrow larger sums of money with a secured loan.

As the loan company has more security with these loans you’re more likely to be accepted if you are a higher risk borrower. If you think you fall into this category be sure you can afford the loan before applying.

Again it’s important to check for any early redemption fees, and perhaps even more so in this case as the repayment period will generally be longer.

There are a number of providers offering competitive secured loans including:

Provider APR Typical APR
First Plus 6.3% 7.9%
Paragon 6.5% 6.5%
Nemo 6.9% 6.9%

For an online quote in minutes, complete our secured loan form. Not only is our loans service free but there’s no obligation to purchase. Compare secured/homeowner loans today.

Getting the best rate

Not everybody qualifies for the loan rate as advertised. If you have a poor credit record then you may well be turned down or offered a loan at a higher rate. If they do turn you down, companies are not obliged to reveal why, so it is worth investigating any problems with your credit record. Even better is to check your credit rating first and go for the loans that you’re likely to get. MoneyExpert can match your credit rating with the best available loans to help avoid rejection and get you the best deal.

Beat the odds

The odds of winning the Euro Millions Lottery aren’t great, so don’t rely on chance if you’re in need of cash. There are plenty of secured and unsecured offers available; all you need to do is find the right offer for you. Before you sign up however be realistic about what you can afford to pay back each month. So long as you’ve thought the potential risks through carefully you should find that a loan gives you the freedom to make the changes you need to your finances.

Click through to MoneyExpert now for money saving tips and hints

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