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What is an unsecured loan?: An unsecured loan is a loan where no asset is pledged as security for the loan. (The most frequently used security is the family home.)
What if I already have a mortgage or loan secured on my home?: It is possible (indeed common) to have more than one mortgage or loan on your property, as long as there is sufficient free equity in the property to secure the loan.
What happens if I am suddenly injured or taken ill?: To protect your loan repayments in case you are unable to work due to accident or illness, you will have to take out either personal loan or short-term income protection insurance.
What happens if I want to borrow more?: To borrow more you have the option of either taking out a new loan independent of your other loan(s), or arranging with your loan provider to add onto your existing loan.
What happens if I can't meet the loan repayments?: If you are having problems repaying the loan, you will need to talk to your lender straight away to discuss the problem.

What if my loan application is not accepted?

Sometimes a lender may not wish to give you a loan. This may be for a number of reasons, however the lender is not obliged to tell you exactly why the loan been refused.

If you apply for a loan and you are turned down - and you wish to find out why - contact your lender within 28 days to ask for the name and address of any credit reference agency used for assessing the loan. The loan company is legally obliged to tell you whether they used a credit reference agency, and if so, which one. You can then contact the credit reference agency for a copy of your credit report, and you will be able to see for yourself why your application was rejected.

If they did not use an outside agency and you were turned down according to their own criteria, you failed the 'credit scoring'. Lenders use this system to determine if you're a low enough risk, and every loan company has different criteria. However most lenders will tell you, in broad terms, why your application has been rejected. You can then make sure the problem is fixed before you apply for another loan.

Risk Warning
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.
Think carefully before securing other debts to your home.