What is an Unsecured Loan?    

An Unsecured Loan is where the loan is not secured against a property that you own.

Because the lender does not have any security, there is always a risk that the lender will not recover all of their money. This means that they will always charge a higher interest rates in comparison with an equivalent secured loan where repayment is virtually guaranteed.

Furthermore, the amount of money you can borrow via an unsecured loan is less - typically between £500 to £25,000 and the repayment period is also shorter - typically 3 to 10 years.

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