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The difference between secured and unsecured loans

What is the difference between Secured or unsecured loans?What loan is right for you?

If you are looking to raise funds, you could be forgiven for being confused about which route to go down to find the right loan for your requirements - so what is the difference between secured and unsecured loans?

Secured loans

If you are a homeowner, a secured loan could allow you to borrow money at a low rate against your property, even if you have a poor credit history. One key difference between secured and unsecured loans is that with a secured loan, the amount available to borrow is from £5,000 to £2,500,000.

Secured loans are ideal for anything from a new car, consolidating existing credit or adding value to your home by making improvements or even adding an extension.

Secured Loan Representative Example: If you borrow £33,000 over 14 years at a rate of 13.901% variable, you will pay 168 instalments of £503.59 per month and a total amount payable of £84,603.12. This includes the net loan, interest of £47,408.12, a broker fee of £3300.00 and a lender fee of £895.00. The overall cost for comparison is 17.8% APRC variable.

Please be aware that when consolidating items of credit, whilst your monthly repayments may reduce, you could be extending the term and therefore the total amount of interest you will pay.

Unsecured loans

With an unsecured loan, they are quite different in that the loan is based on your credit worthiness, your income and what debts, if any, you may have.

If your credit history is less than perfect, these loans can be much harder to obtain and can have higher interest rates if your criteria does not meet their specific requirements.

Unsecured Loan Representative Example: If you borrow £5,000 over 5 years at a rate of 14.9% APRC fixed, you will pay 60 instalments of £116.26 per month and a total amount payable of £6975.60. This includes the net loan, interest of £1975.60, a broker fee of £0.00 and a lender fee of £0.00. The overall cost for comparison is 14.9% APR.

Secured vs unsecured loans

Now you’ve seen the difference between secured and unsecured loans, hopefully this will allow you to make a more informed decision on what is right for you.

See if you qualify for a secured loan from £5,000 to £2,500,000 before you apply, simply by answering a few questions below. It will provide you with immediate loan options available for you to apply for based on the details you provided.

Do I qualify?

Please ensure you have read and understood all information before applying.

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  • Nikki has gone above and beyond my expectations on her service levels and I would have no hesitation in recommending your company.

    Nikki has gone above and beyond my expectations on her service levels and I would have no hesitation in recommending your company.

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  • Just wanted to drop you a quick line to say thank you for all your help securing the loan we requested. Throughout the process you acted professionally but seemed to care and helped us through each stage.

    Just wanted to drop you a quick line to say thank you for all your help securing the loan we requested. Throughout the process you acted professionally but seemed to care and helped us through each stage.

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You are a credit to your company.

    Thank you so much for your help recently in sorting a loan out on our behalf. You we're really helpful, have a loverly manner which put us at ease, were very very efficient and made the whole process really simple. You are a credit to your company.

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