Our page gives a guide on the Consumer Credit Act and outlines just what those different interest rates mean. The banks have a number of different ways of reducing the risk of lending. We consider the possible effects of unsecured lending on you and tell you how a simple overdraft may in fact be secured on your house. We explain what a mortgage is and how the bank secures a mortgage and other debts against the value of your house. Guarantees Lenders are often keen to obtain guarantees from third parties that a loan will be repaid.
Typical examples are loans to young adults with no credit record.
The banks will often require a parent to guarantee the loan. Similarly new companies that require to borrow may need a guarantee from the Directors. We explain why we would rarely advise you to sign a guarantee. Copyright OracleLaw, 2000. All Rights Reserved.