There are a number of unsecured loans available on offer in the UK. Most common loan amounts range from £1000 to £25,000 and you have between 1 and 10 years to pay it off. You could repay around £225 for a £10,500 loan over 4 years at 3.7% APR as an example.

If you apply for an unsecured loan in the UK, don't be surprised if you see the funds within 48 hours. Yes!!! It can be that quick.


Some lending companies require that the applicant is 23 years and over and must be earning at least £16,000 per year. It is not uncommon however, for the applicant to be at least 18 years of age when applying and earning at least £8,000 annual income. Generally, the maximum age for applying for an unsecured loan is up to 75 years old.

Some but not all require that the applicant have a good credit history and no County Court Judgements against them.

Lending providers also need prove from the applicant that they are a permanent UK resident to be eligible. Most lending providers also require that the applicant have direct debit setup with UK bank account so that monthly repayments can be deducted until loan is paid off.

Many lenders may charge an early redemption fee of up to 58 days' interest if you choose to pay off your loan before the official end date. This is common for existing customers so check with the potential lender.

When signing for your loan make sure to read the small print and understand the agreement you are entering into.

The key take away here is that you have choice in who you select for your financial services. Search for the best deal to suite your own personal circumstances.


  • SECURED LOANS: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

  • HOMEOWNER LOAN RATES EXCLUDE BROKER FEES. THE MAXIMUM FEE MAY BE UP TO 12% OF THE COMPLETED LOAN VALUE.

  • MISSING PAYMENTS ON ANY LOAN WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.

  • UNSECURED LOANS: YOUR HOME IS NOT AT RISK IF YOU GET INTO FINANCIAL DIFFICULTY BUT INTEREST RATE CAN BE HIGH AND DEPENDS MUCH ON YOUR CREDIT SCORE



Some Lending Providers:

  • Nationwide
  • Zopa
  • Sainsbury
  • Hitachi
  • Yorkshire
  • Tesco
  • Clydesdale
  • NatWest
  • Santander
  • RBS
  • TSB
  • Ulster Bank
  • Halifax

Choice of lending provider

You have choice so examine their respective loan offer to get yourself the best deal at price comparison sites such as MoneySuperMarket and GoCompare.

 

Loan Information:

When will interest rates rise? 


Possibly February 2016 

What is the rate of inflation?


The average rate of inflation for 2015 will be 0.5%. This has been the lowest for 14 years.

What is the Enterprise Finance Guarentee?


Funded by the tax-payer, it was set up in 2009 to help small business who maybe experiencing difficulties obtaining credit.


How do UK lending providers contribute to economic recovery?


By offering services of consumer borrowing and the housing market loans.


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