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A-Z Loan Glossary

A4 Amount
B4 Bank
C4 Cost
D4 Debt
E4 Equity
F4 Finance
G4 Grant
H4 Home
I4 Insurance
J4 Joint
K4 Key
L4 Loan
M4 Mortgage
N4 Net
O4 Overdraft
P4 Premium
Q4 Quote
R4 Rate
S4 Secured
T4 Tenant
U4 Unsecured
V4 Variable
W4 Waiver
Y4 Yield
Z4 Zero




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Loans Know How

Loans in the UK can be confusing, knowing how to compare loans is the first step to making an informed decision. This financial website was created specifically to help those who take out personal loans save money. Our loan glossary provides all the information you need to know about loans A-Z.

Unsecured vs. Secured Debt
 You should never confuse a unsecured loan with secured loans as they are two separate types of loans. read more below

Secured Loans

Secured loans are secured against property in the UK, this means your home is at risk if you fail to make payments. This loan is "secure" for the lender but it offers you no security at all. These products have become increasingly popular targeting the sub-prime(bad credit) market often offering larger amounts for borrowing.

Who should use secured loan debts?
Ideally no one who has trouble making regular payments or who has a debt load larger then they can realistically afford. If you have good credit, find the best rates available for unsecured loans. If you are able to repay your loan without any problems consider this option only when the lender is prepared to offer a rate which is better then the most competitive unsecured rate. Ideally a percentage or two lower, as you should be compensated for the "lack of risk" on the lenders part. read more here: Secured Loans

Unsecured Loans

Unsecured loans are loans that are not secured against property. These personal loans are available to non-homeowners and homeowners alike. Unfortunately for those without property they are harder to qualify for and bad credit applicants will find it even more difficult. Rates are generally higher but not always, especially if you shop around.
Important information for homeowners about unsecured loans read more here: Unsecured Loans


Check the actual APR of your personal loan before committing to a lender. Some lenders charge fees and indemnities. The Annual Percentage Rate is the REAL cost of the loan not the rate shown in bigger bolder advertising.

Interest Rates
Keep an eye on The Bank of England’s Monetary Policy to see if  interest rates are set to fall or rise. The Committee voted to maintain the Bank’s repo rate at 4.5% last month. This is the rate banks are charged to borrow money and it directly effects the rate they will charge you.

Finance Locator
Very useful resources concerning financial regulations, interest rates and your consumer rights shown below.

Financial Services Authority.
FSA Debt Test
Know how much debt you can afford.
Consumer Credit Act
Know your rights.
Office of Fair Trading.
Bank of England
Know what rate banks are charged from BoE.