Whats the difference between a secured loan and a personal loan?
Personal loans are not secured on your home and they won’t show up on your title deeds. This means that you don’t need to be a home owner to take out a personal loan. The loan agreement is a personal contract between you and the lender. A personal loan could, however, affect your personal credit rating and your ability to get a mortgage or other credit. The minimum amount you can borrow is usually £500, and the maximum amount is usually £25,000. If you need to borrow any more than this, you’ll probably have to take out a secured loan. The interest on personal loans is higher than the interest on secured loans, because the lender is running a greater risk that you won’t be able to pay back the money.
