Unsecured Loans

Unsecured Loans

If you don’t qualify for a homeowner loan, an unsecured loan could be the answer. An unsecured loan means you can raise finance for any purpose without securing it against your home. Unsecured loans are the best option for private renters, council tenants and people living in housing association properties as there is no need for a property to guarantee the loan.

Unsecured loans usually carry higher interest rates than a secured loan. This is because there is no property to act as security to the lender and so the loan is considered a greater risk – because of this more stringent criteria may be used to assess your application. High Street lenders are often not a suitable route to applying for an unsecured loan as their criteria is more strict – you may find that applying to a specialist lender may be more successful as their unsecured loan plans are more flexible.


It is important when applying for an unsecured loan that you take time to calculate your repayments against the offered APR on the unsecured loan. Unlike a secured loan where if you failed to make repayments your home could be at risk, not making payments to an unsecured loan would still affect your credit and could result in a bad credit history.