Unsecured
loan UK. An unsecured loan is a loan that is
not secured on property. It does not require any assets
to be nominated as security.
If you fail to keep up with repayments on an unsecured loan,
the finance provider has to undertake legal proceedings
to recover the money they are owed, with no explicit risk
to your home or any other asset.
There are differences in the interest rates that are charged
on the two types of finance. Secured finance generally have
a lower rate of interest than unsecured loans and the repayments
can usually be made over a longer period.
This is due to the fact that lenders perceive there to be
a greater risk of non payment / ability to recover money
owed from unsecured loans.
Unsecured loans are commonly associated with financing
new cars. There are specialist plans for car purchases.
You are securing finance against yourself. This type of
finance commonly offers values between £500 and
£25,000 and repayment terms between 6 Months and
25 Years.
