SECURED & UNSECURED LOANS
Introduction
There are two types of loan available: 'secured' and 'unsecured'. For a secured loan, an applicant provides some security for the loan, which is usually a property. If the applicant falls into arrears in repaying the loan, then ultimately the lender can take ownership of the security to repay the loan outstanding. Consequently, the most popular type of loan is on an unsecured basis, as you don’t have to provide any security for the loan, with the lender making a calculated assumption that you will repay the loan as agreed. However, rates offered for secured loans are often more competitively priced so it is always recommended to seek advice.
The Finance Key are able to source the right loan for you, based on your individual circumstances and needs.
A loan may not be the right option for you, so it is wise to take advice if you are unsure. For example, if you’re looking to borrow significant funds for home improvements, it may be a better option to raise the capital from your existing mortgage.
Personal loans - both secured and unsecured - are regulated by the Consumer Credit Act 2006. The Act contains strict regulations about how money is loaned (these are known as 'regulated loans'). Loans up to £25,000 taken out before 6th April 2006 are regulated by the Consumer Credit Act 1974.
Contact us today to see how The Finance Key can help you with your loan enquiry.
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