Helping you find and get the best UK loans & UK credit cards

Credit card companies are basically in the business of making loans to consumers and business. They are financial institutions that charge you, the consumer, a certain amount of interest on the money you use that they have made available to you.

Credit cards come from many different sources such as banks, stores, airlines, car companies and so on. Most people have a credit card from the bank with which they deposit their money. How this works is, you the depositor, put money into the bank and they promise to pay you a certain, low amount of interest. The bank then, in turn, loans your money out to others in the forms of loans and credit cards at a higher interest rate.

The difference between the interest they are paying you and the interest they are getting from their loans and credit cards is how the bank earns money. And, given that the average savings account interest rate is around 3% and the average rate on a credit card in the UK is 18%, they are making quite a bit of money. That is why so many other non-banking institutions got into issuing credit cards. There are, in fact, some companies that make more with their credit card business than they do with their original product or service.

Generally, bank owned cards have the best value. Store cards tend to have higher interest rates, higher fees/penalties and have trickier billing rules to live by. You are more likely to encounter “two cycle billing” with a store card than with a bank but, that is changing. “Two cycle billing” is where the issuer charges you interest on the average balance on your card for two months instead of one. In other words, you could incur an expense in one month, pay it off that month but still be charged interest on it in the next month even though it was paid off.

The main thing to remember about any credit card company is that they are in the business to earn money, not lose it. They are not philanthropic organizations giving out money to those who need it. Keep this in mind and you will better understand how your credit card works, how to control it and how to use their credit to your advantage.

All of us are guilty of not guarding our spending and not saving enough.  We know that saving money matters.  However, it is much easier to control for purchasing physical items than for financial products.  For example, to buy or not buy that big ticket item that you don’t need, or this item is £50 cheaper at another store.  The answers are clear and logical, “I won’t buy that large flat screen TV” or “I will save £50 by going to the other store”.

For financial products, finding the best deal and saving money is often not as clear or logical and is often overlooked by many.   It is important to be aware of this and NOT spend more than you need on credit cards, finance cards, mortgages and loans.

For these financial products, there are two basic factors to consider.  The interest rate (or APR) and the length of the outstanding debt.  All of them, when managed properly can save you money if you make the right choices.

Mortgages.  This is a long term debt you are going to be making payments (and spending on interest) for many years, 20 or 30 years in many cases.  How much does an extra percentage point of interest cost you over 30 years?  Add the compounding factor and it is substantial.  By shopping around for the best deal now, you will save yourself and your family a lot of money over the years.

Credit cards.  Same deal.  Why pay 1%, 2% or even 5% more interest than you need.  If you have an outstanding balance you are paying interest on, either transfer the balance to the cheapest interest rate card you can find, or better yet, get a loan at an even cheaper rate to pay off the high interest debt.

Loans.  Yup, you guessed it.  Same deal.  It is worth it to find the best deal (low interest rate) and save money on interest.    Loans also provide another utility to saving money on financial products.  Debt consolidation.  By using cheap loans (ie. low interest rate), to pay off all your high interest rate debts such as credit cards, store cards, purchase cards and other high(er) interest rate loans, you can save a substantial amount of money.

So, we agree, saving money matters.  How do I get cheap loans in the UK, you ask?

If you are a homeowner, you can make use of homeowner loans or secured loans.  These loans are some of the cheapest loans in the UK as the lender has less risk that the loan will default.  A high percentage of these loans are paid back dutifully, and therefore they can offer you a lower rate of interest than an unsecured loan.

We can help.  Luxe Loans can find the best loan today on the UK market.  We search and compare UK lenders and deliver the best loan deals for you to choose and then get the loan money in your bank account.  Fill out the form on the right side of this page or goto the free loans quote link at the top of this page for more information.

In today’s hard times, it can be difficult to make ends meet let alone finance that home improvement, replacement vehicle or other emergency expense.

Or maybe you are looking for a debt consolidation loan to pay off all your debts, make your monthly payments smaller, save money and pay off your debts sooner?

Yes it is true, for many it is difficult to get a loan these days.  Especially if you have a poor credit history, county court judgements (CCJ), unemployed or have other issues that can not satisfy the bank’s loan application requirements.

We are here to help.  We offer a service that is specially for homeowners that allows you to find the best UK loans on the market today.  Our loans specialists analyse your needs and will present you the best loan.  UK home owners, you have a very good chance of getting the loan you need.

We do the work.  The hardest part of getting a UK loan is hunting around and finding the best deal for your needs.  Whether it be going to the high street banks to enquire there or navigating the online loans market, it is a hassle and can be very time consuming.  Leave the hard work to us and you can just pick the loan that is the best.  Then a loans specialist will help you through the loan application and approval process.

Technology.  We have proprietary technology that can quickly search loans on the UK market and match you up with the right loans.

All purposes.  We can find you a loan for almost all purposes.  From home improvement, weddings, holiday to debt consolidation loans, no problem.

Fast.  We aim to streamline the loan application process as much as possible to get your loan funds in your bank account quickly.

So what are you waiting for?  To get your loan today, just fill out the form on the right of the screen and a loans specialist will get back to you with the best UK loan deals on the market.  Or, for more information, click on the Free Loans Quote link at the top of the page.

We look forward to serving you and quickly finding you the best loan deal for your needs.

Many UK homeowners are reading the headlines these days and coming away with a picture that is uglier than reality.  We hear things like “there is no money in the system”, “It is difficult to get loans and mortgages”, “the credit system is tied up” and similar statements.  While these statements may be true for first time home buyers, people without home ownership and other categories of borrowers, it is simply not true for a UK home owner with equity in their home.

If you were thinking of trading up your house because you need more space, you want to update the decor, add a conservatory or any other major improvements, now might be the time to think about it more seriously.   Instead of going through the hassle and waiting for qualified buyers, going through a long selling process and then having to find a new home (which you may have to renovate anyway), you may consider improving your existing home.

Adding an attic conversion, refreshing the kitchen and bathrooms, extensions and a host of other projects will be able to give your home a new lease on life and allow you to be happy where you are, enjoy your home more and possibly add value to your home in the long run.

Short on cash you say?  Well, as mentioned above, if you are a UK homeowner with equity to spare in your house, getting a home improvement loan is a fairly straightforward process.  Bad credit, good credit, employment status are all considered but the main factor is the equity in your home, the amount between your mortgage balance and the value of your home.

Another factor in your favor is that there are many lenders and loans out there to consider.  You can use a broker (we can help you in this area, just fill out the form to your right and you will have a selection of the best secured loans to consider in no time!), that will help to search the many lenders in the market and quickly come back to you with the best homeowner loan deals.  Then you can select the loan that is the cheapest or suits your situation the best.

There are no hard and fast rules concerning debt consolidation as every case is different and depends on several factors.  There are some guidelines that can help you decide however.  Lets talk about some of them here today.

First, for those who do not know what debt consolidation is, a brief overview.  Debt consolidation replaces many smaller debts, payments and outgoings to multiple debtors with one debt (or loan) and one larger monthly payment.

The first thing to understand is where your money is going, what interest rates you are paying and where you can save.  Here are a few areas to look at:

Carrying a large balance on credit cards and store cards.  If you do not pay your credit card balance every month, you are likely paying a high interest rate on the balance to the credit card company every month.  Usually, the interest rate is very high on credit cards, up to and above 20%.  Store charge card interest rate is usually even higher, sometimes between 20% – 30%.  Wow, that is expensive.

Car loans and boat loans.   These loans are typically not as expensive as a credit card debt, but usually is higher than a debt consolidation loan.  Check the interest rate you are paying on these types of loans.

Unsecured personal loans.  Again not as expensive as credit card debt but can be high compared to other secured loan options.

Lines of credit and overdrafts.  Do you carry a balance on your line of credit or overdraft every month?  If so, find out what you are paying and what the interest rate is.  You may be able to save money here.

Layaway plans and no money down consumer deals.  Did the ‘no money down’ deal sound good when you bought that new flat screen TV, furniture, appliances or other consumer purchases?  Maybe it was easy and sounded good at the time, but usually these deals get expensive over time.  They lure you in with no down payment and you pay off the item over several years.  If you don’t know, you had better check the interest rate they are charging you, it could be outrageous.

Too many creditors.  Do you have to go through the hassle of paying many bills to many debtors every month?  Writing, cheques, sending payments, invoices, emails, worrying that each payment went through are all part of the headache of having too many bills to deal with every month.  With debt consolidation, you can get rid of these hassles and just have one monthly payment to one lender.  Simple.

Monthly payments too high.  Are any of the above or combination of the above situations causing your monthly payments to be more than you can afford?  A UK debt consolidation loan might be the right solution for you to save money and lower your monthly payments to a manageable level.

So what next?  Get some quotes for several debt consolidation loans.  You can do this right here by filling out the form on the side of this page.  Your details will be matched against a large number of loans and lenders and a loans specialist will get back to you with a selection of the best UK loan deals on the market.

Before the advent of the Internet and the world wide web, getting a loan was a time consuming process.  The borrower had to kowtow to the high street bank or building society.  The banks were in charge and the borrower had to go to their premises to even enquire about a loan.  Then lets say you want to compare loans, you had to goto several banks’ branches and find out the information, rates, terms and qualifications for the loan.  How many banks would you have the time to goto today?  3? 5?  Not a very good selection of loans to compare is it?  Then lets say after you took all the papers and information home, compared the loan deals and finally made a decision.  Now you have to make an appointment and have an interview with the loans officer to discuss not only your loan needs but to be evaluated in person.  In our little scenario we haven’t even applied for the loan yet.  This was a hassle at best and more often than not, a tedious and time consuming process.

Fast forward to today.  The Internet has enabled a whole new group of lenders.  These companies have provided the much needed competition that the loans market was missing before when the banks ran the show.  Two benefits of this transformation in the industry are lenders that can do business without an expensive high street storefront and loan brokers that can compare many loans from hundreds of lenders in a short period of time.  Lets concentrate on the latter for the purpose of this article as it will bring you the most direct benefits in your search for an online secured loan.

Enquiry Speed
With the Internet and technology you can submit your needs for a secured loan one time without leaving your house or office.  No trips to the bank, no collecting the best deals.  Online secured loans UK, are able to be found, processed and have funds in your account faster than ever before.  You can now do in 30 seconds what took days or weeks before.

Easily and quickly compare loans from top lenders
Once you submit your needs, they will be matched with hundreds of loans and lenders out there for your requirements.  The loans expert will come back to you with the best deal(s), doing all the legwork for you.

A loan for everyone
Have bad credit, special loan needs or special circumstances?  All of this can be considered and chances are, the group of lenders searched will offer the type of loan you need.

More competition
More lenders means more competition and better loan deals for you and your family.

Less paperwork
While there still will be some paperwork, it is much less than before.

Fast approvals
With online secured loans, you are able to get your loan approved much faster than the bank manager method of the past.  You don’t need to stress over being long approval processes.

Money in your bank account faster
Now you can have your loan funds much much faster than before.  Now you can start that renovation project, pay the bills, consolidate debts much sooner.

If you are in the market for a loan, Luxe Loans is happy to help.  Just fill out the form on the right of the page and your loan needs will be processed by our system and matched against a large pool of lenders to find the best loan for you at the best price.  A loans expert will then call you back to discuss the best loan options.  Of course it is free and there is always no obligation.  What are you waiting for?  Get the loan of your dreams today!

Lets start off with what a personal loan is.  It is a loan that is used for personal uses like expenses, renovations, education, vehicles, vacation, paying off credit cards and the like.  Different lenders have different rules on what a personal loan can and can not be used for.  Two things that lenders commonly don’t permit a personal loan to be used for are for investments and for business purposes.  There may be other restrictions and rules which vary by lender so check first what they allow.

A regular personal loan is usually an unsecured loan, meaning that the lender does not take any collateral for the loan.  For the lender it is a risky proposition to give unsecured loans so to obtain one, the application process is more stringent.  Things they will look at are your credit score, credit history, outstanding debts and obligations, if you have a job or steady income, how the loan will be used, overall risk, reference checks and more information will be needed for the application and screening process.  Sound like a pain?  Not necessarily, if you have good credit, history with your bank and a good job and low debts and outgoings, an unsecured personal loan may not be a problem for you.  It is worth noting that unsecured personal loans almost always carry a higher interest rate than their secured counterparts.

Secured personal loans are much less risk for the lender.  You must secure the loan with your property to guarantee the loan amount.  The lender will put a lien on the property until the balance is paid off in full.  If you happen to default on the loan, the lender can seize your property to pay back the funds that you borrowed.  It sounds scary that you could lose your home but with careful planning and prudent budgeting, it is actually a quite attractive loan option.

First, the secured loan is much easier to obtain.  As long as there is enough equity in their home, most are able to easily qualify for this type of loan.  There are even secured loans for those with bad credit and CCJ (county court judgements).  Another benefit of a secured loan is cost.  Secured loans are generally available at a much cheaper interest rate.  This is because it is a less risky proposition for the lender as the loan is secured with your property. The secured loan is generally also available in much larger amounts.  This is helpful for larger debt consolidations, home renovation projects and larger purchases that need to be made.

We hope this has been a helpful overview to understand the difference between a secured personal loan and an unsecured personal loan.  If you are currently in the market for a loan, we are happy to provide you with a free online quote with no obligation.  Just fill out the form on the right of the screen and our system will seach our huge pool of lenders to find the right loan for you.  A loans expert will then get in touch with you to discuss your best options.

Comparing secured loans offers’ can seem like a daunting task in the beginning.  There are so many factors involved to selecting the right secured loan for your needs.  Lets give you a primer and take a look at some of the common elements of a secured loan so you can compare secured loans and get the best deal on your loan.

Interest rate
When people evaluate secured loans, the interest rate or APR is the first thing most will look at.  While it is obviously important to get the lowest interest rate, there are many other factors you need to look at to get the full picture.

Variable or fixed interest rate
There are two types of interest rates, variable and fixed.  A variable interest rate will rise and fall along with the market and the economy.  If interest rates go down, your loan interest rate will also go down, giving you cheaper monthly payments.  Beware though, if interest rates go up, you will be paying a higher interest rate.

A fixed interest rate is as stated.  It is fixed for a certain period of time.  This way you can be sure of the monthly and overall costs of your loan.

Introductory rates
Is there an introductory interest rate deal?  This is where the first year or two gives you a much cheaper rate of interest.  Then when that period ends, the rate will revert to either a higher fixed or variable rate.  Make sure to understand the details of this type of loan, it may look cheap in the beginning but can you afford the payments later after the cheap rate is long gone?

Loan term
The term is the length of time you will have to repay your loan.  Your monthly payments will be based on the loan term and the interest rate.

Monthly payment amount
This is the amount you will have to pay to service the loan every month.  As noted above, if you have a variable rate, your monthly payments will go up and down with the markets.  If you need certainty for the amount you owe every month, make sure your interest rate is fixed.

Total repayment amount
This is a commonly overlooked factor when taking out any loan.  You need to understand what the entire payment amount will be including interest, principal and all fees.  Only by adding in all charges and costs will you be able to find out the real cost of the loan.

Loan fees and costs
Many loans will have at least some sort of fees and costs.  Make sure you ask and understand what all the fees and costs are going to be.

Payment protection insurance
If you are injured or disabled and no longer have regular income to pay your secured loan, you could lose your house if payments are not made.  There is special insurance for this and you can evaluate the costs and risks to decide if you need this or not.  This should be considered as part of the loan total cost when you evaluate the secured loan deal, if you take this option.

Ease of access to the money
You need to understand exactly how you will get access to the loan funds.  Will it be wired to your bank account, will it come in installments, will you get a debit or credit card that can access the money.  Ask how and where you will get the loan money once approved.

Overpayments
If you foresee extra income or savings, you may want to make additional amounts on top of your monthly payments.  This will pay off your loan much sooner as it will be paying the principal of the loan directly and not going towards interest.  You will want to understand if overpayments are allowed and if there is a fee to make overpayments or not.

Early loan repayment
This is the ability to pay off the entire loan balance earlier than planned.  With some loans it is allowed and some loans have a fee to do this.

Payment holidays
Some loans have the ability to take a payment holiday.  This means that you get one or several months where you don’t have to make the loan payment.  Check for availability, terms and if there are any penalties for taking a payment holiday.  Obviously, not all loans have this option and some loans charge a higher interest rate for secured loans with this and other features.

Other loan terms and conditions
When taking a secured loan or any loan, you need to read and understand all of the terms and conditions of the loan.  The loan terms will differ for each loan so set aside some time to read through and evaluate the terms.

There you have it, this should be a good start for you to understand how to compare secured loans.  You should also use your common sense and logic to ask questions and  understand all aspects of the secured loan.  After all, you may be paying back the loan for many years, make sure it is suitable for your needs and that you are happy with everything before taking the loan.

If you are looking for a loan, we can help to compare secured loans from many providers.  Fill out the free loan quotation form on the right side of the page and a loans expert will get back to you with the best deals and advice that you may need.  It is free and there is never any obligation.

Here is a list to help you understand what some of the secured loan types are.  The list isn’t exhaustive but it is a good place to start and covers the major loan types.  Lets get started!

Remortgage
A remortgage generally refers to finding a new lender (and new mortgage) to replace your existing first mortgage.

Second Mortgage
Is different to the remortgage and is exactly how the name suggests.  It is actually a second mortgage loan in addition to your existing first mortgage.  Second mortgages are usually provided by the banks, credit unions or mortgage brokers and can involve a lot of paperwork and hassle.  You might need to have your property appraised, pay application fees and pay for other closing costs such as title searches and legal fees.

Secured Loan
A secured loan is any loan that is “secured” by collateral.  The most common type of collateral is one’s primary residence.  In exchange for the loan funds, the lender will have a lien on your home (or other secured collateral).  Generally, you can get a low interest rate with secured loans.  If you don’t make your payments or pay back the loan, your house will be at risk.

Landowner Loans
There are several specialized secured loans available for owners of vacant land or an empty property.  There are also development loans and joint venture loans for those looking for loans for more commercial purposes.

Bad Credit Loans (or Poor Credit Loans)
Bad credit loans are a type of home equity loan.  There are subtle differences though.  First, more factors are taken into consideration like your age and employment status.  Also the interest rate will likely be higher than a normal home equity loan.  There are certain lenders that will not issue loans for people with bad credit.  The good news is that you are in luck as many lenders do offer this type of loan.

Car Loans and Vehicle Loans
Car loans are a form of secured loans where the car is used as collateral for the lender.  The interest rate is higher than a home equity loan but much lower than a credit card interest rate.  Car loans usually need good credit and proof of regular income to be able to obtain one.  A car is a depreciating asset so car loans are given for a shorter period of time, usually up to 5 years.

Boat Loans
Need to buy and finance the purchase of a large vessel, sailboat, yacht, motorboat or other large water craft?  A secured boat loan can be taken, usually in the form of a marine mortgage.  The vessel will be used as collateral for the secured loan.   If you have enough equity in your house or property, you could also possibly take a Home Equity Loan to finance the boat purchase.

Debt Consolidation Loans
Debt consolidation loans will enable you to roll up (pay off) all of your smaller debts, payments and loans into one monthly payment.  The loan is usually secured with an asset like your home.  Unsecured loans can also be used to consolidate debts but they are harder to get, have a higher interest rate and the loan amounts are smaller.  A secured consolidation loan will give you the ability to consolidate larger debts and the interest rate is lower.  Also, check the Debt Consolidation section of this website for more information on this loan type.

Home Improvement Loans
A home improvement loan is a great way to finance renovation and improvement on your house.  There are specialist secured loans available for this so you don’t have to use your savings or dip into your investments.  In some cases, the lender will look at your income, credit rating, spending habits and of course the value and equity in your home to qualify you.  Loans can range from small to large depending on the size of project that you are undertaking.  One possible benefit of home improvement is that it could increase the value of your home, thus making the loan even cheaper.  Be careful though as it is not guaranteed that your home value will rise by the same amount that you spend on the improvements.

Low Interest Loans
Low interest rate loans are as described, they carry a very low or lower rate of interest.  The benefit is obvious, lower interest equals saved money on both your monthly payments and your total interest paid over the loan term.  Low interest loans sometimes have a low interest rate for a certain period, and then reverts to a normal interest rate.  Some low interest rate loans have less favorable terms as well.  Penalties for early payments, no payment holiday options, no overpayments (or fees for doing so) and less flexibility than normal loans.

Home Equity Loans
Are secured loans where your home is used as the collateral for the loan.  There are some of the cheapest loan interest rates available for this type of loan.  Also, you can sometimes borrow up to 100% of the value of your home.

Home Loans
Generally refer to mortgages but can also mean a Home Equity Loan.

Safe Home Income Plans (SHIP)
Is generally for those over the age of 55.  It is a type of mortgage that releases equity in the form of a lump sum or regular payments to you over time.  This type of loan will have you take out an interest free loan which will then be paid off upon your death when the property is also sold.  One good aspect of this scheme is that you have the legal right to stay in your house until you die.

Homeowner Personal Loans / Secured Personal Loans
Is a personal loan that is secured against your home.  These loans can be very flexible and give favorable terms like allowing repayments, overpayments, payment holidays and even easy access through credit and debit cards.  These loans might need to have your property valued before you can get accepted.  Rates will vary depending on your situation, you might get the lowest rate if you have a very good credit rating plus have other factors ‘checked off’ like regular income, lots of equity in your home etc.

We hope that this has helped to clear up some of the terms and types of secured loans out there in the UK.  If you would like help finding the best loan, just fill out the form on the right of this page and we will do the searching for you and come back to you with the best options for your needs.  It is free and of course there is no obligation, what are you waiting for?

There are many reasons that a secured loan is in many cases better than it’s unsecured loan cousin.  In the right situations that is.  One point to highlight is that the amount of the loan can usually be much larger than an unsecured personal loan or credit card loan.  This allows you to have more freedom to make large purchases or larger expenditures.  Lets list some of the reasons for taking a secured loan and then later we will tell you the most popular use for this type of secured debt.

- Unexpected expenses
- Unemployment or loss of income
- Vehicle purchase or boat purchase
- College education expenses
- Health care expenses
- Shortage of cash
- Home renovations
- Funding Investments
- Debt consolidation

So which do you think is the most popular?  You guessed it, debt consolidation.  Many people take a secured loan to be able to pay off all of their smaller loans, debts and expenses.  This frees them of making all those payments and dealing with the hassles of having many creditors.  Once they get the secured loan, all of their other debts are usually paid off and there is just one lender to deal with and ONE monthly payment.  Sound like a relief?  It is to many and can make life much less stressful without all those payments to make every month.

The other benefit of this is that you can usually save money at the same time.  How is that you ask, you are still borrowing the money.  Yes, you are still borrowing money but you are borrowing at a much cheaper rate.  Lets take some examples.  How much is your credit card interest rate?  20%?  How about store cards?  How about other loans? How about late interest on bills?  The interest rate on these small “loans” are sometimes ridiculously high.  No wonder it is so hard to get ahead for many that use this type of consumer credit, they are paying a lot of their money towards paying high interest charges and fees.

What if you could replace that with one loan at 5% interest.  You get the picture, you will be saving substantial amounts of money with the new lower interest rate.

The best part is that this can help people get out of debt faster.  If the savings are used to pay down the debt, you will pay off the secured loan amount much faster than if you were wasting money on all of those sky high interest charges.  If one is serious about getting out of debt, one must be diligent in adhering to this regime of putting the extra money aside to pay down the new secured loan.

One other thing to remember is that getting a secured loan is often much easier and faster than getting an unsecured personal loan.  If you have extra equity in your house or property it should be no problem at all to get a cheap loan and get it quickly.