Loans Features

Need a hitman? Take out a loan!

The only criterion for filling in a loan application form in is: be honest. Telling porkies on the application form is not a good idea for a number of reasons, not least because it's fraud. You may think being economical with the truth marks you out as a quixotic chancer, but the lenders will merely consider you a criminal. For one thing, any "discrepancies" between your declared existing debts and what a reference agency discovers them to be will be dimly viewed and could go on your credit record, making it even harder for you to get credit.

How first time buyers can still get a mortgage

First-time buyers have been stopped in their tracks, as most of the mortgage deals they have traditionally depended on to buy a home have been withdrawn as a result of the credit crunch. Last month saw the last hurrah for loans of 100% of the property's value. Many lenders have also withdrawn 95% deals - last week, for instance, Woolwich became the latest lender to withdraw its remaining 95% loans, so borrowers now need a deposit of at least 10%.

How to choose a cheaper loan

You might not think that being fussy about who you get your loan from makes a lot of difference, as long as you can afford the monthly payments - but look at it another way. If you borrowed £10,000 over five years it would cost you £196.56 a month with Moneyback Bank, £209.91a month with Egg and £216.65 a month with NatWest. An extra £10 or so a month might seem affordable, but when you add the extra that you will pay over the period of the loan, the cheapest deal saves you more than £1,200 compared with the most expensive one. Who would turn down a free gift of more than £1,000 simply for shopping around? You might be able to get some extras on that new car you have had your eye on.

Don't move, improve to solve your housing problem

If you don't want to stick your neck out of the front door to brave the winds of the housing market, there is always another option; stay put, ride out the housing slump and obtain planning permission for an extension, extra bedroom or loft conversion in your current home. But while this solves some immediate problems, the downside is that it will still mean borrowing money. There are several ways to do this depending on your circumstances.

Credit where it's due to you - how to borrow what you need

The shortage of funds available in the market means that lenders can cherry-pick who they are prepared to lend to. Think of the situation as being like the television show Blind Date. The lender is out on the front of the stage telling the audience what appeals to him in a partner, and you are one of several candidates behind the screen trying to make yourself sound attractive to win the date.