Frequently Asked Questions about loans

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Frequently Asked Questions

iceh2o.net Who is eligible for a personal loan?
Generally you need to be over 18 years of age and a UK resident with a regular income. For a secured loan you must be the owner of a property in the UK.
How much can I borrow?
The maximum amount you can borrow with an unsecured personal loan is usually 25,000. Secured loans which use your property as collateral can be arranged for higher amounts and can also depend on how much equity you have in the property.
How long will the loan term be?
This is typically a personal decision based on the amount you are borrowing and how much monthly payments you can afford. Unsecured loan terms can be from 6 months to 10 years and secured loan terms can be as much as 25 or 30 years.
Should I take out Payment Protection?
It is a good idea to consider a policy that will cover your repayments in case you're unable to work due to sickness or redundancy. Independent insurers may offer you a better policy than your lender.
What can I use a personal loan for?
There are usually no restrictions. A new car, a vacation, paying for a wedding, a child's education, home improvements, debt consolidation: it all depends on your specific needs.
What is a credit check?
This is a search done by all lenders no matter what type of personal loan you are applying for. This will check your credit history with a credit reference agency such as Experian to determine whether you are a good lending risk.
What is the Bank of England Base Rate?
This is the rate of interest used to manage the economy, hence it is likely to change from one month to the next. The changes in the Base Rate affect other interest rates - everything from mortgage rates to the interest earned on savings accounts.
What is LIBOR?
The London Inter-Bank Offered Rate is the interest rate at which banks borrow money from each other. This is calculated on a daily basis.