Find a UK unsecured loan to borrow money via a loans adviser

An unsecured loan is where a lender will loan money without any kind of direct security. As you might expect, you are likely to pay higher interest rates on an unsecured loan, because there is a higher potential for a borrower to default without the lender having a direct way of recovering  the money loaned without resorting to the UK legal system.

Where the total loan requirement is fairly small (less than £5,000 for example) and if you only wish to borrow money for a one off event such as a wedding, consolidation of other debt etc., it may not be worth the costs of exit and arrangement fees to change your UK mortgage for such an amount of money. It would probably be easier to find and arrange an unsecured loan, and with less setup fees. The interest rate would be higher, but since these types of loan contract tend to last short periods, a review of your financial situation would quickly show whether your could support the repayments.

It may also be an extra risk to borrow more money against your UK property since this gives a second lender claim over your property if anything goes wrong, especially when the item you are using the unsecured loan for is not an asset, or where the asset value is shrinking. So where you only want to borrow a relatively small amount of money it is often easier and quicker to find and arrange unsecured loans over a shorter period. 

For example if a you want to borrow £3,000 for credit card debt consolidation, it may be better to borrow an unsecured loan over a period of just a few years. This is an example where the use of the loan results in no asset value, so there is no security for the lender, unlike for example using hire purchase to buy a car where the car is the security for the loan. Secondly if you were to borrow using your house as security and still had difficulty paying off the loan, your family home might be at risk of repossession for the sake of a relatively small amount of money. Having said that, your home may still be at risk if the lender chose to pursue the unpaid unsecured borrowings through the courts.

Whatever size loan you need to borrow, Better-Mortgages co uk Ltd an independent mortgage, loan, and insurance adviser, can arrange an unsecured ,  re-mortgage, or secured loans to suite your money borrowing requirements, using one of our competitive lenders. Just call us on the number below to discuss your requirements with a qualified adviser.

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