An unsecured loan will enable you to borrow money even if you’re not a homeowner. If you want to apply for this type of loan you will need to have a reasonable credit score though. If your credit score is good enough you can generally arrange an unsecured loan fairly quickly.
Typically you can borrow anything from £1,000 up to £25,000 but it does vary by lender. The interest rate will also vary depending on the amount that you want to borrow. The lenders are likely to reduce the rate if you borrow a higher amount.
If you are a homeowner then you have a choice of either loan. If your credit history isn’t great then you’ll probably not be accepted for an unsecured loan. The lender will probably require you to use your property as security for the loan.
If your credit history is ok and you don’t own your own home then this could be the right type of loan for you. Our loans team will discuss both options with you and help you choose the right loan for your circumstances.
Generally, they are between 1 and 5 years. This means that your monthly repayments will be that much higher than if you opt for a secured loan (if that is an option for you). Additionally, your interest payments can prove to be expensive with some lenders if you take out a short term loan i.e. less than 3 years.
Make sure you are comfortable with the monthly repayments. Don’t overstretch yourself. It’s also important to check the terms and conditions regarding early repayments and also the possibility of payment holidays. If you did need breathing space for a couple of months this could be really useful.
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At Bradgate FS we aim to make choosing and applying for a mortgage, protection, or insurance as stress-free as possible.