Comparing loans in the UK
If you`re looking for a loan, you`ll want the very best interest rate you can find for your circumstances. That`s one reason it`s important that you take some time to search the market and compare the various deals on offer.
Why is finding a low interest rate so important?
This may sound like a simple question, but many people don`t realise quite how much money they could save - both monthly and over the entire course of the loan - by taking out a loan with a lower interest rate.
Take the following example of a loan of £5,000, repaid over five years:
- Interest rate - 12%
- Monthly payment - £111.22
- Total paid - £6,673.33
- Interest rate - 8%
- Monthly payment - £101.38 - saving of £9.84 a month
- Total paid - £6,082.92 - saving of £590.41 overall
As you can see, the difference in monthly payments may not seem so significant, but the overall amount you`d pay is a lot smaller. And the more you borrow, the more difference a lower interest rate is likely to make.
How can I find the best loan deal?
There are a number of comparison sites online that can help you to do this. But not all loan companies advertise their deals on these websites, so it`s worth having a good look around yourself to see if there`s anything they`ve missed.
Of course, this can be time-consuming - and that`s where a company like Think Money comes in. When you call us about a loan, we`ll search our panel of lenders on your behalf, meaning there`s less effort required on your part. We`ll even do all the paperwork for you (apart from the initial forms that we need you to fill in, sign and send back).
For more information on finding the best loan deal, click here or call one of our expert loans advisers today on 0800 195 2910.
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Tags: loan, loans, compare, interest rate, low interest rate