UK Personal Loans & Secured Loans
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On this page we will explain the differences between a Personal Loan and a Secured Loan
What is a Personal Loan?
A Personal Loan is a smaller amount of money which can be used to cover expenses like a new car purchase, holiday or improvements to your UK home. You may prefer to choose a personal loan to consolidate existing debts. See debt consolidation. Check out our no obligation FREE loans service.
- the amount you can borrow will be based on your personal credit rating
- the Personal Loan cannot exceed £25,000
- the maximum time for re-paying the loan is 10 years
What is a Secured Loan?
Also referred to as a Homeowner Loan, a Secured Loan is where you are required to use your UK property or other valuable asset as security against a loan. This enables the lender to reduce the risk of lending to you. The amount you can borrow on a Secured Loan will differ from lender to lender and will also depend upon your individual circumstances.
- you may borrow more than £25,000 (maximum amount varies between providers)
- the maximum time for repaying the loan is up to 25 years
- in general, the more you borrow, the lower the interest rate
- with your home as security you may be eligible for a loan even if you have had past credit problems
- it is important to remember that your home is at risk if you default on your loan repayments
The criteria used to determine the amount available to be borrowed, the length of the loan (the term) and the Annual Percentage Rate (APR) will depend upon:
- the equity in your property
- your ability to make repayments on the loan
It is important to consider your circumstances very carefully before taking a Secured Loan / Homeowner Loan or mortgage. You risk losing your home if you fail to pay (default). Click here for our FREE loans service.
Why should I choose a Secured Loan?
In general, a Secured Loan will allow you to borrow more and repay the loan over a longer period – up to 25 years. It can be used for almost any purpose and, as the lender has the benefit of security a Secured Loan can be offered to people who may be excluded from other loans. The self-employed, those who have recently changed jobs or those who have previous credit problems can be considered for a Secured Loan.
How do I find the best Secured Loan?
It can be complicated and time consuming searching through the 1000s of UK Secured Loans providers to find the best value loan to suit you. With so many providers offering Secured Loans in the UK it could take a very long time to compare them all yourself. Click here for our FREE loans service.
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