Browsing "Banking and Savings Accounts"

Business Loans Explained

Oct 23, 2014   //   by Keith McDonald   //   Business Guides, Lending Guide  //  Comments Off on Business Loans Explained

A business will often need to borrow money at some point, either to survive or to invest for the future. A business loan is one way for a firm to access the finance it needs. Let’s find out more about the options available.

A business will often need to borrow money at some point, either to survive or to invest for the future. A business loan is one way for a firm to access the finance it needs. Let’s find out more about the options available.

Business loans typically range between £1,000 and £50,000, though much larger amounts are available as well. Firms can use this funding for a variety of reasons: from improving cash-flow in the short term to investing in capital, personnel, or research and development in the longer term, which will help a business to expand.

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Bridging Loans Explained

Oct 2, 2014   //   by Keith McDonald   //   Business Guides, Lending Guide  //  Comments Off on Bridging Loans Explained

If you need to act quickly to secure a loan, or you only wish to borrow for a short period, it may be difficult to secure a commercial loan or mortgage to suit your needs. So why not consider a bridging loan?

What is a Bridging Loan?

A bridging loan is a short term funding option which can be arranged much more quickly than a standard commercial loan. Bridging loans are useful for funding short-term projects, or for bridging the gap between securing a property and arranging a longer-term commercial mortgage.

How Much Can I Borrow?

Bridging lenders can offer up to a maximum of about 80% loan-to-value against a property. However, this will be against a short-term 90-day valuation of the property, which is likely to be lower than the open market rate, so this may impact the amount you can borrow.

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An Introduction to Business Banking

Oct 2, 2014   //   by Keith McDonald   //   Business Guides, Savings Guide  //  Comments Off on An Introduction to Business Banking

If you’re a business owner, you’ll be looking for an account that is tailored to suit the needs of your business. And if you’re a limited company or a partnership, you’ll need a business bank account to run your company. So, what sort of things might you consider when selecting your business bank account?

What are Business Bank Accounts?

Business bank accounts are fairly similar to standard bank accounts. By keeping your business transactions separate from your personal affairs, it’s a lot easier to formulate your accounts at the end of the year.

There are separate accounts available for start-up companies and established businesses. A business will normally qualify for a start-up account if it’s in the first year of trading or if the account you’re opening is the first business current account.

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Secured Loans Explained

Sep 30, 2014   //   by Keith McDonald   //   Lending Guide  //  Comments Off on Secured Loans Explained

Secured loans, or homeowner loans, allow property owners to borrow sums of money against their homes. If you don’t want to interfere with your existing mortgage arrangements, a secured loan could be the ideal solution.

Imagine the situation: house prices are going up, you want to release some of the equity in your home, but your mortgage deal is too good or too expensive to break. You’ve then become what’s effectively known as a mortgage prisoner.

Or, another scenario: you’ve become self-employed and mortgage lenders are less interested in lending to you because of the new stricter mortgage rules.

Secured loans are not only a good alternative, but also an affordable one, as rates have improved in line with the housing market.

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Variable Rate vs. Fixed Rate Mortgages

Sep 30, 2014   //   by Keith McDonald   //   Lending Guide  //  Comments Off on Variable Rate vs. Fixed Rate Mortgages

When you’re looking for a mortgage, one of the most important decisions you’ll have to make is whether to opt for a fixed-rate mortgage or a tracker mortgage. Let’s compare them both here.

The main difference between the two is that variable rate and tracker mortgages can both fluctuate, while the rates on a fixed-rate mortgage are set in stone for the duration of your deal.

The main similarity between the two is that both normally offer a headline rate for a period of between 2 and 5 years, after which they revert to the lender’s standard variable rate.

At this point, you can remain with the same lender, or look to re-mortgage at a lower loan-to-value to secure a better rate.

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Guarantor Loans Explained

Sep 26, 2014   //   by Keith McDonald   //   Lending Guide  //  Comments Off on Guarantor Loans Explained

If you don’t have the best credit history, getting an affordable loan can prove to be a challenge. But there’s now a slightly different type of loan, called a guarantor loan, that could help you to get around this problem.

Guarantor loans allow a second person to act as a guarantor. So, if you’ve got a friend or relative who is prepared to vouch for you, you’ll be able to lend on the basis of their credit history rather than your own.

A guarantor loan allows you to access between £1,000 and around £10,000 over a term of one to five years.

The rate of interest will be higher than a standard personal loan, but it’ll be much lower than high-cost alternatives, and you’re unlikely to face high up-front changes or arrangement fees.

Your guarantor can be anybody that isn’t financially linked to you, such as a spouse or partner.

Ideally, you want your guarantor to be at least 21 years of age, with a good credit history, and a homeowner in the UK. These factors help to convince a lender that the debt is in safe hands.

Some lenders may be more flexible about your guarantor, but you may end up paying higher rates as a result.

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