Unsecured Loans

An unsecured loan does not require you to provide collateral as security should you default on payments, as this type of loan represents a greater risk to the lender of not being able to collect the full amount, the charges on an unsecured loan are greater than on a loan which is secured against property. The reason for this higher APR( Annual Percentage Rate ) is because the lender has no guarantee that the money will be repaid, and so cover themselves by taking out insurance policies to underwrite the amount lent, this extra cost to them is passed on to you the customer.

If you are not a homeowner, and do not have any assets to offer as security, then an unsecured loan is the only option available to you.

Personal Loans

Even if you are a homeowner you may find this type of loan to be your best option, especially if you wish to borrow a small amount.

Typically, the amount that you will be able to borrow with this type of loan will be lower than is offered with a secured version, making unsecured loans more suitable for smaller purchases often with a shorter repayment term (although the period of the loan can be up to ten years in some cases). Generally speaking, the longer the repayment term the higher the total amount you will pay due to the fact that the charges are calculated based on an annual percentage rate of the amount borrowed, so the longer the term the more interest there is to pay. The rate of interest often depends on the amount being borrowed – the higher the amount being borrowed the lower the interest rate will be.

Unsecured UK Loans

You may find that the amount you will be able to borrow depends on your previous credit history, if you have had problems in paying creditors before you may well have a poor credit rating, if this is the case check the adverse credit loans page for more information.

A major advantage of an unsecured loan is that you will not be putting your property at risk should you not be able to meet the payments, giving you peace of mind that if you should run into trouble your home will not necessarily be at risk.

Fill out our no obligation quote form today to find out how to raise the money you need for anything from home improvements to a luxury holiday. Using our service is free, and will save you the hassle of searchng through the unsecured loans available as our experts will find the best deal for you.