General information
Established in 1996, Lombard Direct is part of the Royal Bank of Scotland (RBOS) and now has over 250,000 customers. RBOS is now the second largest financial institution in the country and is a leading loan provider of unsecured home loans, also supplying credit cards, car insurance and home insurance.
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Features of the Lombard Direct loan
Lombard Direct offers some of the lowest loan rates available in the UK. It has built a huge customer base, mainly through TV advertising. Lombard Direct loans can be used for any purpose, for example for consolidating debt, home improvements, or car purchase.
The typical interest rates that Lombard Direct offers are extremely competitive. These typical rates may not be the rate you are offered, as the Lombard Direct typical rates are based on the loan company offering these rates to 50% of its customers, whereas the remaining 50% may have to take up a more expensive loan, based on individual circumstances.
With Lombard Direct, the loan money will be sent straight to your bank account once your loan is approved. There is no complicated paperwork and no administration fee. You can apply 24 hours a day, 7 days a week, and online application takes about 10 minutes.
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Comparison of the Lombard Direct loan with other UK loans
Overall, if you are looking for one of the lowest rates on the market you will probably find Lombard Direct competitive; however, there are many such loan companies. You can use the A1Credit.co.uk loan comparison service which assists you in comparing some of the lenders and will help you decide on the most suitable loan for you.
When deciding on a Lombard Direct loan, you can opt for a specified amount which must be paid back within seven years. This is a good solution if you want to repay your debt quickly; however, if you require a longer period there are other lenders who may offer you periods of up to 20 years. Almost every lender will allow repayment over 10 years (see: A1Credit.co.uk loan comparison service).
In relation to Lombard Direct loans, the interest rate you are offered is fixed for the term of your loan. This is therefore a good solution if you are taking out a low-rate loan, as the many variable rates on offer are more likely to rise than to descend and therefore with the fixed rates, you can probably budget more easily.
Note that Lombard Direct also charges an early redemption amount if you want to pay off your loan earlier than specified. However, you can probably find another lender who will not charge for this.
Lombard Direct offers payment protection, so if during the loan period you are unable to work due to illness, accident or redundancy your repayments may be covered with the Lombard Direct Loan Payment Protection Plan.
A typical example
A ‘typical example’ is used so that you can see how much you would be required to repay each month and the total amount you would pay back for a loan amount at the typical rate.
If you apply online for a personal loan of £5,000 over 36 months without optional payment protection insurance, 36 monthly payments of £151.62 are required. The total amount payable would be £5,458.32, 5.9% APR (typical) fixed. Whichever method you choose (Internet or phone), when you apply for your loan, you will be told exactly which APR can be offered to you.
A1Credit.co.uk’s impartial and independent loans comparison service lets you see the very best deals around. A1Credit list many of the lowest rate any purpuse personal and secured loan companies and loan deals, both variable and fixed rate and compare with others.
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