Hot Topics

What is a Home improvement Loan?
Many people choose to take out home improvement loans so they can give their house a new look before selling.
What is a secured loan?
Secured loans enable homeowners to borrow capital against the value of their property. This means that you are effectively using your property to guarantee the loan. If you cannot keep up with the repayments, your home is at risk.
Can I have a fixed rate loan?
It is entirely up to you if you want a fixed rate or a variable rate loan – however there are some limits to this.
Can I cancel my loan application if I decide not to go ahead for any reason?
If you decide you want to cancel your loan application once you have made it, you can do so within a certain period of time set by the loan company.
Over what length of time can I spread my repayments with a debt consolidation loan?
You will be able to spread your repayments over whatever term you need to in order to meet your repayments.

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.)

Apply now

Because you are not guaranteeing the loan against the value of your home, you will not be able to borrow such large amounts of money as with a secured loan. You can usually apply to borrow anything from £500 to £25,000, but this depends entirely on the loan provider and how much they are willing to lend you.

To repay the loan, most lenders will give you the option of paying the loan back within between six months and ten years, depending on how much you are borrowing. It's your decision how much or how little time you need to pay back the loan in full, however do not be tempted to overstretch yourself as you will end up missing payments. On the flip side you also need to pay back enough each month so that the loan doesn't drag on for years and years, because the longer it goes on the more interest you will have to pay, and the more the total loan will cost you.

Without security, the risk to the loan company is higher. Therefore, without security, the loans company will take out extra insurance to cover any money lost should you default on your payments. This cost gets passed onto your loan, and means higher interest rates. This is why unsecured loans almost always have a higher APR than secured loans.

Apply now For an Unsecured 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.