Unsecured Loans

Unsecured loans can be used for a variety of purchases. Are you currently thinking about, or do you need to do any of the following?

• Buy a new car?
• Redecorate?
• Install new central heating?
• Carry out some home improvements?
• Organise a wedding?
• Take a trip or holiday?
• Extend your home?
• Build a kitchen or conservatory
• Create a new garden?
• Consolidate some existing debts?

What is an unsecured loan?

Unsecured loans are loans where you are not borrowing against the value of your house, but just borrowing money without giving any security or collateral to cover the loan balance. Most lenders will offer you an interest rate based on your personal circumstances and the amount you want to borrow. This unfortunately means that the 'typical' interest rate advertised by a lender might not be the rate you are offered - your own rate will depend on your credit rating.

How much can I borrow?

Unsecured loans typically offer lower sums than secured borrowing, so you will be restricted in how much you can borrow. This is sometimes why homeowners take out secured rather than unsecured loans.

How long is the repayment term?

Unsecured loans work on an interest rate known as the APR. This is the Annual Percentage Rate. Because it's an annual rate, the longer you take the loan over, the more interest you will pay. So you should always aim to take loans over as short a period of time as possible. The best way to calculate a loan is to work out how much you can afford to pay each month, and work out the loan term from that, rather than looking at a loan term and trying to decide whether or not you can afford the repayments.

How can I find unsecured loans easily?

Apply online for one of our brokers to call you back as soon as possible. We help thousands of people each week with loans, which is why Explore Finance are one of the largest UK independent loans brokerages. We'll trawl our lenders for the best deals on unsecured loans for you.