Loansite is a leading on-line
finance broker in the UK.
Helping many thousands of users to find a loan online since 1999.
Secured
or unsecured loan?
Secured Loan
A
secured or 'homeowner' loan is secured on your property by the lender.
As a result of this, the lender has little risk of losing any money
and so can offer the secured loan at a lower interest rate. Because
the lender has a charge or security on your property a Secured Loan
is easier to obtain as past credit problems can be disregarded to
some extent. With all secured loans you should be aware that 'your
home may be repossessed if you do not keep up repayments on your mortgage
or any other debt secured on it.' That's not just waffle - you really
can lose your home if you don't make the repayments!
Unsecured
loan
An
unsecured loan can cost more but it does not carry the risk to property
of a secured loan. If you have problems in repaying, you can't lose
your home. Because of this, it's often harder to get an unsecured
loan if you've had credit problems in the past such as mortgage arrears
or late or missed repayments on a loan, credit card or credit agreement.
Payday Loans
A
payday loan is a type of unsecured loan which is generally taken out
for a short period of time - typically a few days or weeks. Because
of this the annual APR or interest rate can be very high (in the thousands
of percent). The amount you repay on a payday loan will increase dramatically
if you 'roll it over' and do not repay it at the first opportunity.
