Unsecured loans have a higher rate of interest than secured loans (secured loans being for home-owners only). Home-owners should look for a secured loan quote prior to an un-secured quote - and we are happy to do this for you. Please click here

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What is an Unsecured Loan?

An unsecured loan is a personal loan which does not require you to offer collateral to back the loan, in contrast to secured loans which require you to use your home as collateral.

People who use unsecured loans are generally those who are not in a position to offer to collateral, i.e. people who don't own a home or have adverse credit records, CCJ's, mortgage arrears or debt issues. Although you aren't required to offer your home as collateral, it is worth highlighting that many a loan company still require you to be a home owner in order to be eligible to apply for an unsecured loan.

What are the Benefits of Unsecured Loans?

Owing to the fact that you will not have to offer your home as collateral against the loan, an unsecured loan offer less risk to the person taking out the loan than a secured loan.

One of the main benefits of unsecured loans is the quick turnaround in applying for one. Since an unsecured loan does not require your home to be valued before the application can proceed, the turnaround from making an application to receiving an answer, and ultimately your loan, is much quicker.

Another benefit of unsecured loans is the fact that the success rate of applicants is very high, and although adverse credit records, CCJ's, mortgage arrears or debt issues will not affect the loan application, it should be remembered that the better the credit record, the better the loan terms and rates are likely to be.

What can Unsecured Loans be used for?

Unsecured personal loans can be used for a variety of reasons, including:

Home improvements - a loan is taken out to carry out home improvements, with the aim of adding to the overall value of the home.

Debt consolidation - a loan is taken out to pay off existing debt, thus consolidating the debt into one manageable, longer-term loan repayment.

Mortgage arrears - a loan is taken out to cover arrears in mortgage repayments, or to convert current mortgage repayments into a longer-term, more manageable loan repayment.

Car finance - a loan is taken out to finance the purchase of a new car, as the terms of a secured personal loan are more attractive than other car finance options.

Adverse credit - a loan is taken out with a specialist loan company, who, despite previous adverse credit issues and problems being approved for a personal loan with other loan companies, are willing to approve a secured personal loan.

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