Loan brokers: why use one?

What is a loan broker?

A loan broker is an individual or company that helps you find a loan and matches you to a suitable deal.

In the past, loan brokers were most frequently found on the high street. You would visit their offices and they would help you find a loan to suit your personal circumstances.

However, as a result of the technological advances we have seen in the last decade, many loan brokers can now be found online, often in the form of comparison websites.

They offer the same service, simply in a more easily accessible format, allowing you to compare different loans from the comfort of your own home.

Why use a loan broker?

Using a loan broker can save you the time and hassle of searching through hundreds of deals from different loan companies.

A loan broker can quickly and easily assess your personal circumstances and identify the most suitable and cheapest loans for you.

Normally you will only have to fill in a single quote form and no credit checks will be made until you actually apply for a loan.

We have teamed with Beat That Quote to bring you a free, no obligation loan service. If you are looking for a loan, you can simply fill in the loan quote form, and its loan experts will call you to help you find the best deal available for your circumstances.

Top tips on getting the best loan

A good loan broker should talk you through the details of the loans you are comparing, but it’s always good to know what to watch out for.

Here are our top tips for comparing loans:

• Look carefully at the APR - The annual percentage rate (APR) tells you how much a loan will cost you in interest per calendar year. This allows you to compare loans against each other more easily. Before you sign up for a loan, make sure you know exactly what rate you are being offered.
• Beware payment holidays - Some lenders may offer to defer your repayments for a set period at the start of the loan. However, you will still be charged interest during this time and your future repayments will be larger to compensate. Your total amount repayable will be larger too, so avoid this if possible.
• Check for early repayment charges – It’s a good idea to check the early repayment charges that different providers charge, before choosing your loan. And if you think you are likely to pay off your loan early, make sure you pick one that won’t penalise you. Don’t bother with PPI - Personal protection insurance (PPI) is the latest mis-selling scandal to affect the banking industry. Sold on the back of loans (and credit cards), the idea behind PPI is that in the event of you losing your job, having an accident or sustaining an injury, PPI would cover your payments. However, it’s a useless product riddled with exclusions. So, whether it’s online or face to face, if your loan broker asks if you’d like to add PPI to the loan, politely decline and don’t be persuaded to change your mind

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