Loans Guides

A good credit rating can give you access to all types of loans and by shopping around you can find a deal to suit you. If you are used to handling your bank accounts and utilities online then you may prefer to go with an online lender, but if you prefer to use a high street bank or building society then YourHomeBills.com have plenty to choose from.

Most people select their lender by looking for the lowest APR (Annual Percentage Rate) and choosing a low APR is the easiest way to save money on your repayments. But a low APR doesn't always mean the loan will work out cheaper as lenders are always changing their rates, so the only way to find which low cost loan is the cheapest is to compare them all at the same time.

There’s a multitude of low rate loans available so you need to decide early on what type of loan you are looking for. The main things you need to consider are the amount you want to borrow, how long you want the loan to last for and how much interest you wish to pay. It's also worth considering if you might be in a position to pay off your loan early as some low rate lenders charge a fee if you pay off the full amount prior to the expiry of the loan term. Naturally this isn't in your interests so be sure to read the small print of the loan before agreeing to it.

We recommend you use the YourHomeBills.com loans calculator to help find the right loan for you and your circumstances.

Fixed and variable rates
If you’re looking for a low cost loan then you're best to look at those loans which offer a fixed rate. This will ensure that you're interest payments remain fixed regardless of any fluctuations in the Bank of England base rate.

APR
Typical APR is the headline interest rate figure quoted by lenders in their advertising for unsecured loans. The APR calculation takes into account the basic interest rate, any initial fees, when interest is charged (i.e. daily, weekly, monthly or annually) and any other costs you have to pay. Lenders are legally required to calculate APR the same way, enabling consumers to make like-for-like cost comparisons between lenders and their products.

Though you might think this is the total figure you will be charged throughout the term of the loan, this is in fact just a guide as the rate may fluctuate in line with market conditions. Lenders will usually calculate the typical APR of their personal loans by using risk based pricing. This allows them to assess the individual circumstances and credit history of those people making the loan application before they decide the appropriate interest rate to offer that person. On this basis not everyone will get the rate they had hoped for.

Loan arrangement fees
Depending on the type of loan you take some lenders may charge you a loan arrangement fee when your application completes. This is similar to the fee charged by some credit card providers and typically reduces the interest rate on the loan, but remember, this will be an additional cost so you may be better off with a provider that doesn't charge an arrangement fee but still offers you a low rate loan.

Early repayment fees
At some stage in the term of your loan you may find that your financial situation allows for paying off the remaining balance. By repaying your loan early you can vastly reduce the amount of money you spend on it, so it's worth finding a lender who will not charge for paying back the loan early.

How do I find the right loan for me?
The best way to find the right loan for you is to compare all the available loans on the market, but most people don't have time. YourHomeBills.com does this for you and by simply entering some details about the amount you are looking to borrow, the type of loan that you want and the duration you are looking to borrow for we can provide you with a list of loans that are available to you.

Find a loan now by using the YourHomeBills.com loan calculator.

Loan Payment Protection Insurance
Whenever you take out a loan you can be certain that the lender will try and sell you payment protection insurance. This form of insurance is offered at the time of your loan application and will ensure that your loan repayments continue to be paid in the event that you become unemployed, or have an accident or illness which prevents you from working.

Be sure to check if you are already covered by any other policies you might have taken out and look at whether your savings might cover you should you fall seriously ill or become unemployed.

Payment protection insurance is a serious consideration and you must ensure you know everything up front. Read the small print from each provider and remember that you don't have to take it from the same company that you took the loan from. Instead look around as a growing number of Insurers are beginning to sell standalone PPI policies, which are typically cheaper than the policies offered by the lending company.