Personal loan 101- What You Absolutely Need to KnowWritten by Mansi gupta
Daughter’s marriage or her studies? Son’s Ambition? Want a House makeover? Stop worrying about ‘money’ to fulfill your cherished dreams now… Avail opportunity of ‘Personal Loans’. Personal Loan is perhaps a man’s best friend in today’s world. ‘Personal loan’ as name suggests can be for any personal reason. Such reasons vary from person to person for instance a husband willing to give a brand new car to his wife on their silver marriage anniversary, a father thinking of investing and setting up his son’s business etc. thus personal loan can provide you instantly with required investment without any body’s help. If you wish to take a personal loan, all you need to do is to be a little observant, calm and prudently decide which bank or company to go for. Government as well as private banks and companies offer facilities of personal loans. The bank or company that has less rate of interest usually tops list. But rate of interest is not only parameter one adopts. Many a people also confide in banks that require less documentation and spontaneous service. So it is entirely at one’s volition to fix on which bank/company to go for. The channels may also differ in this regard like there are those who directly contact bank/company for this service or ones who leave it upon their agents to do all work for them. Broadly there are three types of personal loans- ·Secured ·Unsecured ·Line of Credit The secured ones are those, which banks or companies keep some kind of security with them – like your house, car and like. If one is unable to repay loan, security so kept is taken up or confiscated by bank giving loan. Such loans can provide you with a handsome amount of money and a lower rate of interest.
| | What is a Tracker Mortgage?Written by John Mussi
A tracker mortgage 'tracks' Bank of England base rate, meaning your mortgage stays in line with interest rates and market in general. The result on your monthly mortgage interest payments is that they go up when base rate goes up and go down when base rate goes down. A tracker mortgage works in a similar way to a standard variable rate mortgage in that it follows rate imposed by Bank of England. Whereas standard variable rate mortgage changes monthly or annually a tracker mortgage usually guarantees to follow changes in bank base rate within 14 days of it happening. Thereby borrower benefits from both falls and rises in interest rates sooner. A tracker rate is one that has a fixed differential to Bank of England rate and is contractually bound to change within a certain time of Bank changing its rate. Thus, tracker mortgage might follow base rate up and down as it fluctuates. The mortgage lender will make profit by charging an amount over base rate. This kind of mortgage is useful for people who are happy for their outgoings to change, but want their mortgage to reflect changing costs of borrowing. Tracker mortgages are often suited to borrowers who are looking for cheap initial payments and can take risk that their payments could increase at a later date.
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