The Rise of Flexible Loans
If you are already repaying a loan but are finding that the terms of the agreement are too restrictive there is now a trend for loans lenders to offer more flexible loans. Although many people are content with repaying a loan over the specified period, some would like more flexibility allowing them to save on repayment loans interest rates by repaying the loan earlier but without being subject to punitive penalties.
Most loans lenders will charge between one and two months interest for borrowers who wish to make early repayment of a loan. But the latest offers being marketed allow for early repayment without penalties or with a limited amount of charges.
By comparing loans and choosing a more flexible option you can have more control over how you repay your borrowing. Go to a money advice website and compare loans that offer overpayments, payment holidays and early repayment options without extra interest charges.
Flexible Loan UK Terms
Flexible loan lenders can give more adaptable terms, including;
- the amount of loan granted
- the interest rates charged
- fees for late repayment
Applicants wanting to borrow higher sums of money may feel restricted by the usual amounts on offer, typically £1,000 to £5,000, and may be looking for a larger sum but without wishing to take on a secured loan in the form of a mortgage.
Loans lenders are increasingly offering higher amounts on loans in the UK, because there is less demand for these larger amounts, the interest rates charged are usually higher. Additionally, with some lenders, flexibility may imply that they offer a payment holiday at the start of the loan.
How much can I get with a flexible loan?
How much you are able to get depends on the lender. Personal Loans Now offers you a huge range of lenders where you can apply for a flexible loan from £500 up to £25,000*. Remember, only borrow what you will need as the more you borrow, the more interest you will pay back.
Note, lenders might offer flexible loans but ask a higher interest rate to offset the loss of revenue made by early repayment charges
Costs of Flexible Loans
There are number of things to look out for when looking at the cost of different flexible loans.
- Early repayments fees
- Set Up Fees
- Interest Rates (APR)
- Extra Charges
A good flexible loans lender, will charge a specified amount for early repayment or will make no charge at all. Set up fees are usually only charged by some brokers. At Personal Loans Now, we believe that you shouldn’t have to pay for our introductory service. If your a lender approves your application and you accept the loan agreement, you will receive your loan without being charged for it.
Finding good loans lender deals on interest rates is not hard as long as your credit record is good. But be aware that the larger amounts of borrowing do sometimes attract higher rates that the normal range of loans. Remember as well that the prices quoted in pre-approved loans often change once you actually apply.
Flexible loans may offer a payment holiday at the start of the loan which on first glance looks a good option. However, the extra interest for this holiday period will add to the total cost of the loan.
How long does the application process take?
Applying online for a flexible loan is easy! Our streamlined application process is here to make your like easy. We know that when you are applying for a flexible loan, life can be tough so we are here to smooth out your journey as much as we can. The online application form takes just 2 minutes of your time to fill out. Once you have filled it out we operate as fast as we can to get you sorted.
Can I get a flexible loan quickly?
Once your application has gone through, Monevo’s unique technology will then analyse it. Their technology see which lender will be the best for your specific needs. The lender will then receive your application for consideration. If a lender approves your application, you will receive a contract to read through and sign. All of this happens very fast, in an average of 90 seconds (if approved). Money can then be in your bank account the same day. Despite operating at top speed to get you the money really fast, the entire loan process is completely secure and regulated by the FCA.
Flexible Loans Borrowing Limits
In the past, loans lenders needed to keep to similar borrowing limits and of course, all loans are subject to status. That is, you will only get a loan if the lender deems you to be creditworthy and able to afford the repayments.
In 2016, the loans war heated up and now there are a number of lenders offering larger sums on unsecured loans. Applicants are taking up these offers in spite of paying a higher rate of interest. This is because the loans are faster to arrange and there is much less paperwork than that involved with a mortgage equity release loan.
The new loan ceilings go from £25,000 up to £50,000 and repayment periods stretch to seven years. As soon as the first mainstream lenders started this trend, others quickly leapt on the bandwagon. Now, well known banks are copying banks like Tesco and Sainsbury’s, both of which offer high amounts of loan borrowing.
Why Is There a Need for Higher Limits?
These new higher flexible best loan rates are particularly useful for people who are renting and who do not have a property to offer as collateral for a high value loan. Buying a car in the high end bracket is now within the reach of anyone who takes out a high value car finance loan. This type of loan could allow you to get the car of your dreams. Or, you could use the loan to finance a trip around the world.
How do I identify a responsible lender?
All responsible lenders in the UK are authorised and regulated by the FCA. You will be giving the lender your private information so you want to know that it will be kept secure and safe. If you are not sure whether a firm is FCA authorised look for a registration number on their website. The registration number should be a link to the firm’s details on the FCA website. At Personal Loans Now, we are an introducer to Quint, which is an FCA authorised credit broker. This means you can be confident your details will only be sent to FCA regulated lenders who are likely to approve your loan. We save you the bother of checking out different lenders, saving you time and money when applying for a flexible loan.
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Online Flexible Loans for Debt Consolidation
Loans lenders are increasingly offering larger amounts as a part of the trend for flexible lending. Could you use one as a debt consolidation loan? As already mentioned, interest rates for larger sums tend to be higher. But, you should take into consideration the overall benefits of borrowing enough money to pay off several smaller loans.
The main benefits are:
- A lower monthly repayment amount.
- Only dealing with one lender instead of several.
- The possibility of being able to repay earlier with no extra charges.
Flexible Loans FAQs
Can I get a flexible loan if I have bad credit?
There are many lenders out there that offer UK flexible loans for bad credit. Having a poor credit score does not necessarily mean that you can’t to get a flexible loan with bad credit. However, despite all the flexibility that many lenders today are offering, the interest rates for flexible loans with poor credit may be quite high. Therefore, be sure to fully understand your repayment plan and make sure you will be able to keep up with the flexible loan repayments.
Are flexible repayment loans more expensive?
Generally, lenders will charge more interest for their flexible repayment loans. It is important to compare carefully the prices of flexible repayment loans in the UK. At Personal Loans Now, we’ll do the comparison for you. This will ensure that you get the best and most flexible repayment loan for you.
What benefits do I get from taking a flexible credit loan?
Flexible credit loans are flexible in a few ways. Firstly a flexible credit loan UK is flexible in the amount of loan granted. Secondly, the interest rate charged will be flexible, even though the interest is usually more expensive with flexible credit loans. Thirdly, most lenders who offer flexible credit loans are flexible with fees for late repayments. In this way you can get to choose how to make your short term Loan flexible. Personal Loans Now is a broker where we try to get our customers the cheapest and most flexible credit loan available in the UK.
Will Personal Loans Now get me the best flexible loans?
When Personal Loans Now receives a loan application, we treat it with our utmost care to try and get you the best flexible loan in the UK. We send your application to Monevo who decides which lenders are most likely to approve you depending on the information from your application. We then get quotes from these lenders and sort through them to get the best flexible loan with same day pay-out offer for you. Finally, we offer you the cheapest and best flexible loan we think will be best. This all happens in 90 seconds, and we’ll never charge you a penny for our service.
However, always take into consideration the exact cost of the loan if it runs to the full term. It is not possible to borrow enough to get out of debt. But, it is possible to make your borrowing more manageable and flexible.
Keeping up to date with the latest offers from a range of loans lenders is the best way to start your search for a flexible secured loan. There is plenty of financial advice in the regular press as well as on money advice websites.
Affordability Checks for Higher Limit Loans
What matters to the lenders is the affordability of the loan. As long as you have proof that you can afford the repayments and that your credit record is good, you will be able to borrow up to £50,000 over the normal seven years period. However, you should approach these high value loans with caution.
The Interest Rate Depends on your Credit Rating
There is also the factor of interest rates to consider and some of the high loan amounts come at a stinging cost. Lenders are advertising the representative APR as something like 6.7%. However, someone with only a fair credit rating could expect to pay 14.9%, or even up to 37.9% for a bad credit loan.
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Most lenders have loan calculators which you can use to see what repayments would be. But, in truth the only way you will get to know what rate applies in your own individual circumstances is to apply. This will leave a footprint on your credit file and could deter other lenders in the future. This is especially true if you are applying for a high value loan.
One other factor to consider when applying for a large loan is where you will be in three or five years time. If there is any possibility of you wanting to get a mortgage to buy your own home, then taking out such a large loan might not be the right move.
Making the full repayments each month can help to improve a credit record. However, when you apply for a mortgage, the lender takes all existing debt into account. A large loan could limit the amount you may be able to borrow to buy a property. In this situation, you might have to resort to taking out a loan with a guarantor so that the bank will agree to give you credit.
Should I Consider Flexible Loans?
The most important fact to think about when searching for a loan is that lenders are in it for the business. Yes, it is nice to have the flexibility to borrow more than the usual range of products and restricting early repayment penalties is also a good thing. However, all loans must be repaid, and all of them charge you for the privilege of borrowing. If you are currently unemployed, and might like to repay the loan more quickly when you find employment and begin to earn, a flexible loan could be particularly useful for you.
As long as you are aware of the pitfalls and advantages of borrowing through flexible loans and do not over extend the amount you can afford to repay, using a flexible loan can be advantageous when you need to borrow a lump sum. But remember, always look at the total and true cost of borrowing as well as the affordability factor.
Tip: Anyone who has a tendency to impulse buying should always allow themselves a couple of days cooling off period before applying for a large sum on a loan
There are many advantages to flexible loans over other, more fixed types of loans. Personal Loans Now works with a fully FCA-authorised broker. With access to a huge range of lenders, we are perfectly positioned to help you find exactly the right loan for your current situation. All you need to do is fill out our online application form which will take just a few minutes of your time. Whether you are employed, self employed, or unemployed, whether your credit rating is perfect, dreadful or anywhere in between, whether you want £500 or £25,000 for home improvements or your wedding, we’ll do our best to help you. Apply now, and if approved, you could get the money in your account today!