Personal Loans

Guide: Personal Finance

Types of Personal Loans

  • Fixed Rate - A fixed rate loan does what it says on the tin. At the outset, both you and the lender know exactly how much interest will be charged on the loan, and how frequently repayments are required. This is good for providing security and for budgeting.
  • Variable Rate - Some personal loans will start with a fixed rate, and after a defined term expires they will move to a variable rate. If you think that the Bank of England is going to lower interest rates in the future, then a variable rate loan has the potential to save you money.
  • Graduate Loans - Most banks and building societies have lower rate loans for graduates entering the workforce. These loans are intended to give a helping hand to new workers, by helping them to finance a new wardrobe for work, car, downpayment on a flat and more.

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