Unsecured Personal Loans - Compare Online UK

An unsecured personal loan means that you do not have to be a homeowner to apply for one, and that if you are a homeowner, you do not have to secure the loan against your property. Despite this, some online lenders will still give UK homeowners preferential rates as they are viewed as less of a risk compared to those with no equity. They are also much more likely to accept your application if you own property.

An unsecured personal loan can be used for any purpose you like, although it is worth remembering that most lenders will have special loans for specific purposes, like car loans or home improvement loans, so it might be advisable to see if the repayment terms and interest rates on these tailor-made loans are more suitable.

The amount you borrow can be anything from £500 to £25,000, sometimes even more, but interest rates tend to be lower the more you borrow. Repayments can be spread over a long or short period - some lenders will allow you to repay the loan over as long as twenty or more years, but most personal loans are repaid over one to five years, depending on the size of the loan. The interest rate of an unsecured personal loan will remain fixed for the duration of the loan, and is therefore easier to budget for and manage, regardless of external economic fluctuations.

Applying for this type of loan is very straight forward, and once the application has been approved, the money is usually transferred to your account quickly and efficiently.

Biggest advantage - you do not need to secure the loan against your home

Biggest disadvantage - interest rates tend to be higher

 

 

 

 

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