When it comes to borrowing money, there are a lot of areas you need to tap to find the best available deal. Choosing a deal directly from a lender or opting for a loan through a loan broker is one such major deciding factor. Both of them – a lender and a credit broker – help people to get easy access to financing. However, the way they operate is different from each other and that’s how we can differentiate between the deals.
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. 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. 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 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 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. 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.Maximise your options: Compare and apply for loans below with LoanTube
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Loan Amount
£4000 -
£20000
Norwich Trust
Loan Term
1 -
10 years
4.8/5
Representative APR
31.90%
Minimum Age
21 Years
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
Loan Amount
£5000 -
£100000
Evolution Money Loans
Loan Term
1 -
20 years
4.5/5
Representative APR
28.96%
Minimum Age
18 years
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
Loan Amount
£1000 -
£10000
1Plus1 Guarantor Loans
Loan Term
1 -
5 years
4.4/5
Representative APR
39.90%
Minimum Age
18 years
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
Let us understand this topic in detail.
Who is a lender?
- A lender can be a person or a financial firm that provides the loan. For example, a bank is a credit provider, and hence, it is a lender. Similarly, you will find private companies who lend money to people – they are also known as lenders. It can be said that anyone who lends you money directly without any intermediate is known as a lender.
Who is a loan broker?
- A loan broker doesn’t lend money to you. Rather they find lenders who will lend money to you. That means a broker has to work with multiple lenders to help you secure the best available deal. A loan broker puts together creditors and lenders. They do not use their funds to lend you money. Instead, they help borrowers in comparing multiple loan offers by bringing them a wide variety of options.
How do loan brokers work?
Borrowing a loan or a mortgage can often become confusing when you start hunting for the right one. A loan broker will help you work through any step of searching and applying for a loan – to get the best offer possible based on your circumstances. Mostly, they will help you with:
- Assessing your financial situation to determine how much you can afford.
- Searching the market to find you deals that will be suitable according to your creditworthiness and affordability.
- Helping you compare the deals that are available so that you choose the right one.
LoanTube is a loan broker and we provide a platform where you can compare an array of deals for free. All you have to do is enter a few details and click on the submit button. You will find offers from multiple lenders in real-time. That means the rate that a lender will offer you is the rate that you will likely have to pay, subject to final lender checks. The interest rate will remain fixed throughout the loan duration, provided all conditions are met. There will be no change in the rate of interest when your application goes to the next stage or throughout the loan duration.
Should I use a lender or a broker?
- Whether you apply to a broker or directly to a lender – will depend on your situation. If you have ample time to search for the perfect deal, then you may choose a direct lender for your requirements. However, if you have an emergency, and you need quick access to finance, it is wise to consider a broker. Let the broker work on behalf of you to find the right loan.
- Also, if you choose to use a loan broker it will be beneficial as you do not have to put in a lot of time and effort. If you are about to borrow a loan for the first time, then take the help of a loan broker.
- LoanTube doesn’t charge any additional fees for helping you spot the right lender. You do not have to pay anything to use our service.
- Regardless of the type of service that you choose to proceed for gaining access to finances, remember that the loan you borrow should be affordable.
What should I look for in a loan broker?
- The Financial Conduct Authority (FCA) monitors the financial market of the UK. All the loan brokers and lenders should be authorized by this watchdog. While looking for a broker, ensure that the broker is FCA registered. Visit the Financial Services Register on their website to find all the details about the financial firm you are about to deal with.
- Also, if a loan broker is asking for an upfront fee, beware as you may be dealing with an illegitimate company. Brokers who are authorized by the FCA will not charge any upfront fees. Do not fall into the overpromises made by any lender or broker until your profile is assessed. Some fraud companies may guarantee you a personal loan even without screening your credit profile. It is simply impossible to strike a deal without a credit check.
- Learn more about how you can spot the right lender and avoid getting into scams.
How do I find a loan broker?
- You can simply conduct a quick online search to find brokers. But how do you know what’s right for you? A good start is asking friends who have taken the services of the broker you have chosen. Also, you can always check for the feedback and reviews of the previous borrowers.
- Sit down and give at least 30 minutes to find everything that you can about the loan broker you are considering. Call them up or drop them an email if you have a question that needs to be answered. Reputed and trustworthy companies will always get back to you and will you in understanding the ins and outs of the deal.
- Start your search with LoanTube. We have an association with reputed lenders of the UK. Fill in the form and wait for 2 seconds for our smart systems to find you the right set of lenders.
