Unsecured Loans UK
Want a low risk loan? Unsecured loans are the answer.
With unsecured loans UK borrowers don't need to worry about losing their house if they can't afford the repayments, but that means the loans are riskier for lenders. You'll usually pay more in interest than with a secured loan; for small amounts it might be cheaper to use a credit card.
When it comes to unsecured loans UK lenders take a bigger risk than they would with secured loans: if you don't meet the repayments, the lender can't force you to sell your property (although of course they can still take legal action against you). That's why for unsecured loans UK customers will pay more interest than they would be charged on a secured loan.
To get the best deals on unsecured loans UK customers need to borrow a reasonable amount of money: the lowest rates are for loans of more than £5,000, and rates rise sharply the less you borrow. In many cases you'll find that more modest loans – below £2,000 or £1,000 – are either unavailable, or come with interest rates that are so high, you'd be cheaper borrowing the cash on a credit card instead.
With unsecured loans UK lenders generally offer a variable interest rate, so if the Bank of England rate rises then your payments will too. Consider payment protection and shop around: there are massive differences in the interest rates charged by different lenders.
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