Whats the difference between secured or unsecured loans?
Secured Loan A secured loan is secured on your property by the lender. This means that the lender is minimising the risk of losing any money and so can offer a secured loan at a lower APR (Annual Percentage Rate) than an unsecured loan. A Secured Loan is also easier to obtain as adverse credit history such as arrears, defaults or CCJs can be largely discounted. In the case of a good credit history, some lenders will offer secured loans in excess of the equity available in the property. In all cases with secured loans you should be aware that your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. Unsecured loan An unsecured loan costs more in repayments but does not carry the risk of you losing your home, as in the case of a secured loan. If you don’t repay an unsecured loan, the lender can’t take your house off you. For this reason, it’s often difficult to get an unsecured loan if you have an adverse credit history. An unsecured loan should hav
