Unsecured Loans

As the name implies, an unsecured loan does not require the borrower to put up any security against it.

An unsecured loan is a personal loan where the lender has no claim on a homeowner's property should they fail to repay.

Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments.

People who opt for unsecured loans are usually those who are not in a position to offer collateral or those with adverse credit records, county court judgments, mortgage arrears or debt issues.

By their very nature, unsecured loans involve the lender taking more risk – for which the interest rate is increased.