Unsecured Loans - General Information

In contrast to secured loans, unsecured loan do not require you to use a property as security for the loan, and are therefore more of a risk for the lender.
Arranging an unsecured loan is relatively quick and funds can often be made available within 24 to 48 hours of being accepted by the lender. The terms of the loan will reflect the risk profile and usually allow lower amounts to be borrowed but charge a higher rate of interest. An unsecured loan will typically have a fixed term, fixed interest rate and is repaid monthly.

An unsecured loan is therefore suitable for those looking to borrow up to around £15,000 and who have a good credit history and obvious ability to make repayments. As the size of the loan is generally smaller than that of a secured loan the term of the loan will often be shorter, usually up to 5 or 10 years.

Although security over your home is not required lenders often use court proceedings to recover outstanding balances and will inevitably take your assets into account.

Unsecured loans can be used for a variety of purposes including buying a car, a holiday, home improvements or debt management and consolidation.