FAQs*

What is an unsecured loan?

An unsecured loan does not require you to use your house as a guarantee against the loan repayments. With, a secured loan, the lender can repossess your home if you do not keep up with repayments.

An unsecured loan will typically have a higher rate of interest than a secured loan because the lender will typically cover the loan with extra insurance because of the extra risk involved in not securing the loan against a property.

Because there is extra risk involved for the lender, the amount that can be borrowed is often lower, typically up to £15,000. The amount you are allowed to borrow will depend much more upon your previous credit history than with a secured loan. In addition, the period required for repayment is also shorter; often a maximum of 60 months, although there are lenders who offer unsecured loans of up to £25,000 over 10 years.

UK Personal Loans can arrange unsecured personal loans. Please contact one of our advisers for more information if you want to apply for a secured personal loan, please use our online application form.

*Nothing in these FAQs constitutes advice and is intended for general information purposes only. For qualified advice, please speak with UK Personal Loans Limited 08000 196 777.