Choosing the right loan provider is an important decision. The right loan provider will be able to provide you with support and guidance around which product is right for you, as well as helping you to secure the best rate for your project and circumstances.
It can also feel like a huge undertaking to choose the right provider when there are so many out there!
When you are looking for a loan, there are a few good places to start looking.
Financial institutions often offer preferential rates to existing customers, so if you already bank with someone, the chances are that you will get a better deal if you choose to take out a mortgage or loan from them.
Another factor to consider is that loans aren’t entirely about money. If you are borrowing money, you need to be comfortable that the company you are dealing with is trustworthy and that you won’t have any unnecessary headaches when dealing with them.
If you already like the service you receive from your existing bank or building society, then it can make sense to take your loan or mortgage from them for that reason.
When comparing financial products, it’s important to look at the . The interest rate is the percentage that the loan provider will add on top of the loan as their payment, so generally, the lower, the better.
However, you also need to take the term of the loan into account. Interest is added on periodically, so the longer you have a loan, the more interest you pay. Sometimes, it can actually work out cheaper to have a higher interest rate but over a shorter period of time.
A good loan provider should be able to help you calculate how much you will actually pay back over the entire loan period. It’s this figure that you need to use when comparing loan costs.
If you are taking out a loan for a particular purpose, it can be worthwhile working with a specialist provider as they will have products that have been created with your exact needs in mind.
For example, specializes in loans for first mortgages for people who are looking to build their property portfolio. They have specialist knowledge in exactly what is needed for borrowers to fund property acquisition, renovations, or development, and so working with their expert guidance can remove a lot of uncertainty.
Always check any loans for additional fees and service charges, and take these into account when calculating your total repayment amount.
For example, your lender might charge you an arrangement fee, or they might charge a service charge for moving money from one account to another.
Sometimes loan providers will charge a fee for early repayment, so if you think you might want to do this, it’s worth checking whether this is something you’ll need to worry about.