Unsecured Loans
Unsecured loans are loans that are not secured against property, cars or any other assets. They
are in the majority personal loans and not available for business use.
Unsecured loans are normally available in varying amounts and paid back over different
terms. The time in which you pay it back (known as the repayment term) may be restricted
depending on the use of the loan. For example, an unsecured loan for a holiday may need to
be repaid over 1 or 2 years.
The normal amount available for unsecured loans is between £500 and up to £25,000. The interest
rate will vary depending on your personal circumstances, amount you want to borrow, repayment
terms and your credit history.
The interest rate can be either fixed or variable rate - exactly the same as a mortgage.
The fixed rate will remain at the same rate for the entire duration. Variable rate loans
will go up and down depending on the base rate - so with a variable rate loan you may
end up paying out more each month in repayments if interest rates rise.
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