Baby loans as an attractive option for home owners

A brand-new term has recently been presented on the loan market. Link loans, a secured loan provider, has just launched so-called “baby loans” and they have nothing to do with babies.
The new deal is meant for those borrowers who may have an unsecured loan, or borrowing through a credit card, for instance. They have been introduced as a cheap loan alternative for borrowers who would wish to economize on their monthly loan repayments.
These new loans fall into the category of secured loans and, consequently, they can be obtained by home owners. Normally, secured loans are designed for larger amounts of borrowing, as a rule starting from Ј10,000, but the amount of new baby loans ranges from Ј3,000 to Ј10,000.
Since this is a secured loan, the risk is minimal for the lender and thus they can offer more attractive interest rate than many standard unsecured personal loans or credit cards. With an interest rate of 13.9% and terms from 3 to 20 years, a baby loan could save a customer pretty much money on their monthly loan and card repayments, especially on smaller loan amounts which usually have a higher rate of interest.
The study carried out by Link loans has discovered that the typical British family has unsecured loan debts of about Ј2,700 and baby loans can significantly reduce the monthly cost of these smaller personal debts for borrowers.
Baby loans can be availed up to a maximum loan to value of 60%. Although they entail an arrangement fee, they could still turn out to be much cheaper than current debts for a great number of customers with unsecured loans and cards that amount up to Ј10,000.
As the new product has been launched by a packaging company, one should use the services of financial advisers and brokers to get a baby loan.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.