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Personal Loans and Retirement: Things to Consider

Personal Loans | Retirement | UK | LoanTube

Retirement and personal loans are sensitive financial areas of your life. Have you wondered what if you need more money after or before your retirement period? Will you consider borrowing a personal loan in those times?

They say retirement is the longest holiday that you’ll ever take. But, unlike other holidays, this one requires you to lay the foundation of your financial security, way ahead of time. To make your twilight years free of money concerns, ensure effective financial planning, well in time. But it is true that an emergency may knock at your, uninvited. Exhausting your savings to cope up may not be a good idea, especially after retirement. Retirement is inevitable, and so is the drop in your income when you retire. So what are your options for giving that garage a quick fix or converting your backyard into a beautiful garden? Would you want to spend your hard-earned money all in one go? Or you’d rather take a loan to cover those costs and save your pockets from burning? We have outlined a number of factors that people should consider when applying for a Personal Loan, during their retirement phase.

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£20000

Norwich Trust

Loan Term

1 -

10 years

4.8/5

4.8/5

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

4.8/5

4.8/5

Norwich Trust

Loan Amount

£4000 -

£20000

Loan Term

1 -

10 years

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

Loan Amount

£5000 -

£100000

Evolution Money Loans

Loan Term

1 -

20 years

4.5/5

4.5/5

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

4.5/5

4.5/5

Evolution Money Loans

Loan Amount

£5000 -

£100000

Loan Term

1 -

20 years

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

Loan Amount

£1000 -

£10000

1Plus1 Guarantor Loans

Loan Term

1 -

5 years

4.4/5

4.4/5

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

4.4/5

4.4/5

1Plus1 Guarantor Loans

Loan Amount

£1000 -

£10000

Loan Term

1 -

5 years

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

Sit Back and Take a Fact Check on your Finances

Whether you’re retired, or on the verge of retirement, you need to check if there’s room for a loan in your budget. It is important to check if your pension and current saving would suffice for covering daily essential needs. In addition to this, you need to calculate how much of the leftover money will be spent on repaying an existing debt or mortgage (if any). This will have an idea of the approximate amount of money you’ll be left with, each month. Now all you need to do is check whether this money is enough to repay towards the unsecured personal loan you wish to borrow.

How much can you Borrow as a Personal Loan in the UK?

A lot of factors influence the amount of loan that you are planning to borrow. The amount of money you can pay each month directly affects your chances of getting a loan. For instance, Personal Loans generally tend to fall within a smaller bracket (generally up to £35K). Hence, you’re likely to get one even with a low income. However, for borrowing larger sums of money, you will need to check your affordability and prove it to your lender.

What Type of Unsecured Personal Loan should you opt for?

There a plethora of loans available in the market these days. However, the generalized choice for personal loans still remains between a ‘secured’ and an ‘unsecured’ loan. It is important to choose which loan suits your needs better. Again, checking your finances and evaluating your repayment ability is the key here. Secured loans often use your property as a mortgage, unlike unsecured loans. Even if you have the slightest doubt about repayment towards a secured loan, think it through. You may end up jeopardizing the roof over your head, in the years when you need it the most. Therefore, a crucial step towards happy borrowing is analyzing the type of loan, best suited to your needs.

Finding your ideal loan can be cumbersome. That’s why, we’re here to help you compare loans from different lenders, based on real APRs, all through a single source. Save time and money by visiting LoanTube and find yourself a suitable loan.

What Do Lenders See in my Application?

For any lender, the biggest concern would be recovering their money from the borrower. That’s why lenders scrutinize each loan application carefully, before handing in the big fat check. This credibility has a lot to do with how much income a person generates on a monthly basis. But what do lenders check when you’re retired, or about to settle into retirement? Following are some major factors that lenders take into account while dealing with applications in such cases:

Income

The money coming into your account each month is one of the major determining factors for private lenders as well as banks. An affordability check before applying for a loan, is, therefore, an essential step 1. Lower-income will affect your chances at a bigger loan. Your income (pension) and savings should be enough to repay towards the borrowed amount. However, you also need to make sure that you don’t entirely run out of money.

Credit History

Your credit history plays a significant role in the likeliness of you getting your desired loan. A lender is more likely to risk their money if you have a solid track record of timely payments. This check is imperative irrespective of your employment status. In the case of banks, retired people are more likely to have a long-standing savings account. They may even have credit card subscriptions with the same bank. This means the bank will have a record of your payment history as well as savings. Thus, your relationship with the bank will also impact your chances of getting a bank loan.

Assets

Assets are taken into consideration when you apply for a secured loan. If you are unable to pay towards this loan, the lender has the right to repossess the asset linked to the loan.

Age

Lenders often set an age cap for borrowers. For instance, a lender could set a maximum age limit of 75 years, for the term’s end. Some lenders may set the maximum age for application as 75 years, giving you an edge. The average retirement age in the UK is 65 years with an average life expectancy of 79.2 years for men and 82.9 years for women. Depending on this some lenders may consider your age while setting up the length of the repayment period. For bank loans, younger people often have a higher chance of getting longer repayment periods. Therefore, make sure to check for age restrictions before applying for a loan.

Life goes on even when you stop working. Your retirement should not affect your decision of getting a loan. There’s nothing wrong with getting a little help for that car you’ve been dreaming of buying; or your home re-decoration plans after retirement. The extra cash will come in handy, without taking a toll on your savings. All you need to do is plan and ensure that you have enough resources to cover the repayment, before or after your retirement. After all, a little help doesn’t hurt if it lets you rejoice your retirement.

Representative 79.5% APR

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

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Representative APR Example

The rate you are offered will depend on your individual circumstances.

Representative APR Example: On an assumed loan amount of £1,000 over 18 months. Rate of interest 59.97% per annum (fixed). Representative 79.5% APR. Total amount payable £1,554.10 of which £554.10 is interest. 17 equal monthly repayments of £86.09, and the final month’s payment of £90.57.

Some of the offered loans might be classed as High Cost Short Term Loans. APR rate starts from 18.22%. The maximum APR rate is 1721%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years. The minimum loan amount is £250 and the maximum loan amount is £35000.

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

Not all borrowers will qualify for a loan. The operator of this website does not engage in any direct consumer lending, we simply provide you a FREE loan brokering service. This means LoanTube does not charge customers a fee for using its introducer services, but it receives a commission from lenders or other brokers if a customer enters into a consumer credit agreement with them following an introduction by LoanTube.

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