This article lists the different types of loans available in Ireland.
It will explain them in a little detail, and also give the main advantages and disadvantages of each type of loan.
- Personal Loans
- Mortgage loans
- Home equity loans
- Car loans
- Debt consolidation loans
There are two different main types of personal loans, unsecured and secured.
Unsecured loans are not secured against your house or property.
The interest rate for an unsecured personal loan will usually be higher than a secured loan.
Unsecured loans will generally be harder to get than secured loans, because of the higher level of risk for the lender.
Secured loans are secured against an asset, for example your home if you are a homeowner, or a car.
Because there is a lower level of risk for the lender you will usually be able to secure a lower rate of interest than you would with an unsecured personal loan.
You will also find it easier to get a secured loan – assuming you are a homeowner, than you would if you were applying for an unsecured loan.
Mortgage loans are loans that pay for the part or full purchase of a property.
Different types of mortgages available in Ireland include: remortgages, interest only mortgages, first time mortgages, tracker mortgages and annuity mortgages.
Home equity loans
Home equity loans are loans taken against the equity of a property.
Car loans / Car Finance
Car loans are loans which are designed to pay for the cost of buying a new or used car.
Buying a new or used car can be expensive, so a lot of people use a car loan/car finance to help out towards the cost of the car.
Some car dealerships will offer their own car fiance deal, but always make sure you check to find out if it is best deal available to you.
Debt consolidation loans
Debt consolidation loans are essentially loans which consolidate debts into one monthly payment.
Any type of loan that pays off your debts can act as a debt consolidation loan, including unsecured or secured personal loans, or remortgages.
An alternative to a debt consolidation loan is debt management or other types of debt solutions.
If you are in a debt and are struggling to keep up with your repayments you should speak to your lenders and consider getting advice from a debt advice organisation.