If you’re looking into getting a loan, whether you want some help to cover the costs of some home improvements or to buy a new car you may have been wondering if an HSBC personal loan was the right option for you.
HSBC loans features:
- Loans available from £1,000 to £25,000
- No set up or arrangement fees
- Repayment holiday options – although more interest will be payable
- Make unlimited overpayments free of charge
Eligibility criteria:
- Hold any type of HSBC current account (excluding the Basic Bank Account)
- Have an annual income or pension of £10,000 or more before tax
- Be 18 or over and be a resident of the UK
When taking out a loan of any amount you want to make sure you get the best deal, HSBC loans are just one option of many, shopping around could save you a lot of money you can use the calculator on this website to compare over 200 different loans from over 20 different providers, to help you evaluate your options.
Lenders will advertise their personal loans with a Representative APR however this is not the amount you are guaranteed to get from taking out a loan with them, your actual interest rate will be dependent on numerous factors such as how much you earn and your credit history, they will also take this into consideration when they evaluate how much they are actually willing to lend you.
Homeowner loans
If you want to borrow over £25,000 and you own property a homeowner loan might be better for you. As you have placed your home as security lenders are usually willing to let you borrow more, usually up to £250,000. The maximum they would be able to lend you is dependent on the value of your home and how much equity you have if you have a mortgage.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. If you are at all unsure of the suitability of a particular product for your circumstances you should seek independent financial advice.
Alternatives
Any sort of loan is a large commitment therefore you should consider alternatives before applying for one. If you have any savings it might be beneficial to use these instead, because it may be that the interest you pay on a loan will be higher than any interest you earn in your savings.
There are other types of borrowing than personal and home owner loans such as authorised overdrafts and credit cards you might wish to consider.
If you are planning on getting a loan to consolidate debt you need to understand that spreading your payments over a longer term means you may ultimately be paying more than you would with your existing arrangements, even if the interest rate on this new loan is less than the rates you have at the moment.