Everyone wants to have their own home so they can enjoy the remaining part of their lives with happiness. Most of the citizens in the UK have taken home loans and combined them along with their earnings to build their own houses and repay them slowly in instalment. But due to recent economic conditions, there has been a threat of having a financial breakdown in the country, which might lead to increase interest rate and various other financial problems.
One of the solutions to obtain funds to purchase a home is by getting guaranteed loans with no guarantor from private loan lenders who provide instant short-term loans for people who are in emergency need for money. Some of the loan lenders also provide long-term loans to the maximum of 12 month period, and loan amount along with the interest can be repaid in instalments. If the bank loan is rejected the only other option available for the people is to get these loans from the direct lenders for a high-interest rate.
Is getting bank loans a possibility?
Due to the extreme financial breakdown occurring in the economy of the UK and some other major political disturbances due to the Brexit law people and politicians are restless in the country. The banks have been lethargic in collecting their debts from the people, which resulted in increased loan repayment amount, which would be difficult to collect back.
Most of the corporate companies, student loans, and other forms of household loans have not been repaid thus leading to a huge financial debt of nearly four trillion pounds. The government has been trying to reduce the number of household loans and debts but despite their efforts, the rate of household loans has been increasing rapidly.
In order to control them, the government and the banking sector have placed strict rules to provide loans for people having perfect credit rather than other persons who have poor credits. So getting a loan is a difficult process nowadays and most people are shifting to guaranteed loans rather than getting the bank loans, which are difficult to obtain.
Are guaranteed loans better than bank loans?
Most of the people consider guaranteed loans have a better option than the bank loans due to the non-confirmation of the loans regarding the bank. Any loan application that has been submitted in the banks has a higher rate of rejection than them getting approved. Also, it is a very slow process considering guaranteed loans with no guarantor, which are way faster and instant. Even though the rate of interest is higher, considering the other advantages like time and flexibility along with guaranteed approval make people choose these loans rather than the bank loans. Most of the people are aware of the problems existing in the economic conditions of the country and hence they prefer getting a guaranteed loan rather than a bank loan.
The government has taken several steps to increase the financial condition of the country and it has been evident in the recent 2018 budget. Along with this, the government has planned to increase the personal allowance and work allowances by nearly Thousand Pounds. The government has also taken several steps to decrease the unemployment rate, which in turn will lead to increased financial conditions of the country with more number of people earning money and paying the taxes.
The government also has placed a strict tax policy on the people of the country who have been trying to avoid the repayment of tax through various holes available in the policies. These rules and initiatives are being implemented by the government in the hopes that they will increase the economic condition of the country.
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