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It’s not always easy to find time for your finances. That’s why we make it as quick and easy as possible for you to check your loan options. Take a look now and get your results in less than two minutes.
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What rates can I get?
The rate or APR you’re offered by lenders will be based on your credit history and personal circumstances.
Here at Freedom, we show you real rates as much as possible when you check your eligibility with us. This means we show you the actual rate you’ll get if you decide to apply. To find out what rates are available to you, simply check your eligibility with us and we’ll give you a quick online decision.
Will checking my options affect my credit score?
No, using our eligibility check won’t affect your credit score in any way. We only carry out a soft search when we find you your finance options, meaning that the search won’t be recorded on your credit file. If you do decide to accept an offer, your chosen lender may then carry out a hard search to run their final checks.
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What is the difference between a secured loan and an unsecured loan?
When looking to borrow money, it is important to understand the difference a secured or unsecured loan and why you might want one. Whether you are looking to purchase a new car, wanting to consolidate debt, or take out a loan to renovate your home, both secured or unsecured loans could be an option. The decision will depend on your personal circumstances and various factors that you need to consider.
- Require an asset to secure the loan against —usually this is your property in order to get a secured loan
- Tend to be for larger amounts.
- Tend to be over a longer period of time.
- Can result in lower interest rates.
- Do not secure the loan against your assets.
- Typically these are for smaller amounts ranging from £1,000 – £35,000
- Tend to be for a shorter period of time.
- Interest rates may be higher than a secured loan
What is a Secured Loan?
The Definition of a Secured Loan
A secured loan means that you can borrow money secured against an asset that you own. Secured loans are taken out over a fixed period of time, in which you agree to pay back the loan. Failing to do so, or defaulting on the loan, may result in the sale of the asset in order to recoup any losses.
What are Secured Loans for?
Secured loans are used to borrow large sums of money against something you own, using it as collateral. They are often used for major expenses, such as large-scale house improvements or debt consolidation, and can be taken out over a long period of time. – If a secured loan is taken out against your property, you are agreeing that, in the case that you can’t pay off the loan, you may need to sell your house to make the payment. Likewise, if you used your car as an asset, it may be repossessed if you don’t keep up your repayments. Lenders may see secured loans as lower risk because they know they can collect the money you owe from your assets – if you don’t make the repayments. Because of this security, secured loans may come with better interest rates and longer repayment terms. This can mean lower monthly repayments compared to an unsecured loan -.As with all borrowing, you should consider the total amount you will need to repay overall when considering a product. The amount you are able to borrow and the rate that you are quoted by the lender will depend on your circumstances as with all loans – and with a secured loan, the amount of equity you have in your property will also affect this. If you are a homeowner but your credit history is not perfect, you might find that you are offered secured loans. –
What is an Unsecured Loan?
The Definition of an Unsecured Loan
So, what is an unsecured loan? Well, an unsecured loan is quite straight forward. You borrow money from a lender over a set time period in which you agree to pay back the loan. An unsecured loan is not secured against an asset but failure to make payments on time can can incur additional charges or consequences such as affecting your credit rating.
What are Unsecured Loans for?
Typically speaking, unsecured loans are used to pay for smaller expenses compared to secured loans, these could be things such as car repairs but they can be used for home improvements, a car purchase or debt consolidation. Being smaller value loans, unsecured loans tend to have a shorter repayment terms than secured loans. There can be flexibility and you can pay over various terms of up to around 7 years. Unsecured loans can have a simpler application process than secured loans as they are not secured against an asset It is important to note with unsecure loans, if you don’t make payments, it is possible that additional charges could be applied to the loan. This will show on your credit record. Likewise, in the event that an unsecured loan is not able to be paid back, the lender may still take action to get their money back.
How to know if a Secured or Unsecured Loan is right for you
When looking at a secured loan vs an unsecured loan, there are several things to take into account. If you only want to borrow a small amount of money, for a car repair or small home improvement, then an unsecured loan may be the right option for you. Unsecured loans can be ideal for small amounts of money, with no need of an asset to be secured against the loan. Unsecured loans can also have shorter repayment periods; however, they can also have a higher interest rate. This is due to the shorter lending period. Secured loans, on the other hand, can be for larger sums of money. It is for this reason that they can be suited for large home renovation projects, or to consolidate debt. Secured loans, unlike with unsecured loans, require for an asset to be placed against the loan. It is for this reason that secured loans often require the borrower to be a home owner, in order to use the house as collateral. This is not always the case as, depending on the lender and the amount, other assets can be used – like a car or valuable jewellery. The second aspect worth considering your loan is what your credit score is like. Credit score is taken into account with both secured and unsecured loans. If your credit score is good or excellent then it may be possible to get a high value unsecured loan. If, on the other hand, your credit score is lower than good, then a secured loan may be more viable.
Choosing the Right Loan for You
Before areeing a loan, it is absolutely vital to ensure that the secured or unsecured loan you go for is right for you. If you would like independent advice, it is possible to contact the Money Advice Service. The Money Advice Service is an independent service that offers free, impartial advice. Call 0300 500 5000 or visit the Money Advice Service website.
How much money can I borrow?
The precise amount of money you can borrow through an unsecured personal loan varies from person to person, depending on the lender. Some lenders may give the option to borrow more money or have better rates than others based on the financial history of the person looking to borrow. That being said, personal loans tend to be from around £500 to £25,000.
When applying for a personal loan it is important not to borrow more money than you need or borrow more money than you will be able to pay back. Late or missed payments can incur further charges or fees and the lender has the right to recover the money if repayments aren’t met.
How to know if a secured or unsecured loan is right for you?
When looking at a secured loan vs an unsecured loan, there are several things to take into account.
If you’re looking to borrow from £500 to £35,000 then an unsecured loan could be an option for you. With an unsecured loan, you don’t need to secure the loan against an asset, like your home. The lender will simply lend you the money, and you’ll repay it in regular monthly instalments, plus interest. For this reason, unsecured loans are quicker to set up than secured loans and you could have the money in your account the same day.
The rate you are offered for an unsecured loan will depend on your credit score and individual circumstances. You can use an unsecured loan for any legal purpose, such as consolidating your debts, making home improvements, buying a new car or spreading the cost of a holiday or wedding. Unsecured loan repayment terms range from 1 to 7 years.
To be eligible for a secured loan (or homeowner loan), you need to be a homeowner. This is because the loan will be secured against your property, meaning the lender can take your property to recover their costs if you can’t repay what you owe.
Secured loans are used to borrow larger sums of money than unsecured loans, with loan sizes ranging from £5,000 to £500,000+. This is why the lender requires the loan to be secured against an asset. With a secured loan loan, you can receive advice from a qualified adviser on which loan option is before for you and your circumstances, as well as benefit from much longer repayment terms, ranging from 1 to 30 years.
The most common uses of a secured loan are to consolidate debts or make home improvements, however they can be used for any legal purpose. Although your credit score does impact the rate you’re offered for a secured loan, there are also other factors involved such as the amount of equity you have in your home.
Choosing the Right Loan for You
Which type of loan is right for you will ultimately come down to what’s best for you and your circumstances. You may prefer to opt for your lowest rate loan offer knowing it is the cheapest option. However, you may want to lower your monthly repayments by spreading your costs out over a longer period of time. Although this means you’ll pay back more overall, it could make your day-to-day costs more manageable. Finally, you may simply decide to go for the loan option that you’re most eligible for to reduce the chance of having a credit rejection recorded on your credit file. Whatever you choose, just make sure it is the right decision for you.
Before agreeing a loan, it is absolutely vital to make sure that the secured or unsecured loan you go for is right for you. If you would like independent advice, it is possible to contact Money Helper. Money Helper is an independent service that offers free, impartial advice. Call 0300 500 5000 or visit the Money Helper website.
How long does it take to apply for a loan?
This is sort of a ‘how long is a piece of string?’ question.
It all depends on the lender. An application can take anything from a few minutes or a day, to several weeks.
Where they differ is the process after the application. For instance, a small personal unsecured loan is likely to be faster than a mortgage for £200,000, as additional documentation is required.
So the piece of string really depends on your situation, the lender you choose, the forms to complete, and how quickly you can return the forms.
Are you a credit broker or a lender?
We’re a credit broker. This means that when you check your loan, credit card or car finance options with us, we use smart decisioning to check your details against our one of many lenders’ eligibility criteria and find you options that you’re eligible for. If you have more than one offer, you can then go through your options to find the one that’s right for you.
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Second charge mortgages from 5.1% APRC. Second charge mortgage representative example (if you choose to add fees to the loan). Assumed borrowing of £29,000 over 139 months, plus a broker fee of £2,850 and lender fee of £367.50 would result in monthly repayments of £406.28, the borrowing rate is 8.6%, the APRC is 11.3% (variable), total charge for credit would be £24,254.73 and the total amount payable would be £56,472.23. Freedom Finance is a leading credit broker and not a lender. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.