There are numerous online lenders offering great rates to borrowers with a perfect credit history. But if you have tried that route make just one enquiry here and be considered for a wide range of unsecured lenders through our partner Express Finance.
Fill in the form on the right to enquire about which lenders best suit you.
- 20+ years unsecured loan experience
- Wide panel of specialist unsecured lenders – they shop around for you.
- Instant decisions
- No expensive telephone calls
- Considerate of past credit problems
- Loans from £50 and for any purpose
- Tenants and homeowners welcome
What is unsecured finance?
Unsecured finance is a loan where the borrower does not put up any collateral as security for the loan.
This means that if you were to get into trouble repaying the loan or any reason, the lender cannot simply repossess one of your assets to pay off the loan.
What are the unsecured loan options?
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A personal loan is the first port of call for most unsecured borrowers – these are often paid into the account usually by a lump sum by the bank and the borrower pays a monthly repayment to clear it usually via direct debit.
Successfully applying for the “high street” versions of these depends greatly on how much debt you are in and your credit score, though there are more niche lenders which our partner brokers will be able to look at if you have been turned down on the high street.
A guarantor loan is when you nominate a second person to act as a guarantor – usually a parent or close relative. In the event the borrower cannot repay, responsibility for the loan passes onto the guarantor to repay them back.
Another option is a credit card where you can borrow a set balance on the card which you will then need to clear by the end of the month.
Another option is a payday loan which is where you can borrow a small amount of money at a high interest rate with a very small time frame to repay it back (often until a month, hence the name payday).
Note: A Payday Loan on your credit profile can be detrimental to future loan applications, both secured and unsecured as it suggests the borrower has a problem managing finances. Also a payday loan can get very expensive, very quickly and it is easy to get into a vicious circle of using payday loans to pay off other payday loans.
What about secured options?
If you are a homeowner, you could take advantage of lower rates and more flexible terms with either a second charge or remortgage.
Remortgaging is when you go to your mortgage lender or to another lender and essentially replace the mortgage that you are on with another mortgage – during this process you can also use the equity in your property to borrow more money for the other purpose that you need.
Alternatively, if your mortgage rate is good, or it has high early settlement charges you may wish to apply for a second charge mortgage, otherwise known as a secured loan. This is where you have another mortgage on top of your existing one so that you are essentially paying two mortgages at once.
As the money in both of these cases is being secured by your property a lender will normally be more willing to lend to you on more flexible and competitive terms which could include lower interest rates, larger loan amounts, being more sympathetic to any current or historic credit problems and lending for purposes such as business, debt consolidation or to pay off arrears and CCJ’s.
However, as the asset is being used as collateral, you should be warned that if you fail to keep up repayments the property may be repossessed.
If you are interested in secured finance, talk to one of our advisers on 01902 585020 today.