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Loan Penalties and Common Charge

While you are in the process of selecting your loan deal, it is important to keep several factors in mind about Common Charges and all other things. One of the most important being the APR or the Annual Percentage Rate. However there are several other factors which also require careful consideration. Few of them are listed below.

Arrangement Fees

Arrangement Fees are fees charged by the lenders or loan providers as an administrative charge for setting up the loan deal. This charge not only covers the cost of arranging the loan but also a premium charge for taking up a fixed rate or discount rate loans or Mortgages.

These days it is easy to find companies who do not charge arrangement fees. However some companies do charge arrangement fees which might go upto 1% of the loan amount.

Sometimes you might be faced with a situation where you are charged which arrangement fees higher than 1%. However it would be advisable to inquire around if you can find a better deal with similar terms and conditions to your chosen Loan deal.

Early Repayment Penalties

Twenty four hour loan transfer

Once your Personal Loan is approved the amount is transferred to your bank account or send to you by check by courier within four to five working days. However should you require the amount on an urgent basis then you can opt for this facility where the amount is transferred directly to your bank account within twenty four hours of loan approval. But this facility comes for a small fee. The fees usually vary between thirty to fifty pounds. Unless you are in urgent need of money this fees can be easily avoided.

Payment Protection Insurance

There can be situation where you are not in a comfortable position to pay your monthly loan installment due. This may be due to accidents or temporary unemployment or some kind of disability or sickness. Hence you can cover your loan or mortgage payments. It is necessarily to carefully check each policy as the terms and conditions vary.

The periods for which you can cover yourself against mortgage or Loan Payments vary. The premium is directly proportionate to length of coverage. Longer the coverage period higher the premium. Therefore it is necessary to study the costs carefully as higher premium costs can render your deal expensive and then this might not be an attractive option for you.