Secured and Unsecured Loans

Here is our current selection of secured and unsecured loans for UK residents, this list is kept up to date on a daily basis to ensure you get the best deal.

Types of Loans

One of the most important distinctions between different types of loans is the security required by the lender. Security refers to the collateral offered to the bank to lend money against. If you fail to repay your loan in the timely fashion, the lender will have the right to seize your collateral and sell it in order to repay the loan. High-quality collateral reduces risk to the lender and often results in a lower rate of interest on the loan. Individuals who have declared bankruptcy or otherwise have poor quality credit often find it impossible to borrow money without offering high-quality collateral as security on the loan.

Unsecured Loans

Unsecured loans are loans made to individuals which do not require any form of collateral since the credit quality and financial position of the individual is sufficient for the lender to extend credit without collateral. Most lenders limit the size of the unsecured loans to less than £15,000 or £25,000 without special credit approval.

Secured Loans

Most secured personal loans use excess equity in your home or other property, as collateral but other types of assets might be acceptable. Home equity is difference between the value of your home and amount of mortgage outstanding on it. Your home will be at risk if you fail to make repayments on loan, which uses your home as collateral.