Unsecured Loans
Unsecured loans are loans in which the lender is assuming that you are going to be good for the money you have borrowed. When you borrow using unsecured loans you are not offering any security, guarantee or collateral to the lender. It is for this reason that the interest rate charged on unsecured loans tends to be higher than the interest rates offered on secured loans.
Looking for unsecured loans
Although unsecured loans may be more expensive, they may still make sense depending on how much money you want to borrow and how long you want to borrow it for. You may also be unwilling to use your property as collateral for a secured loan (it is very rare for individual borrowers to use anything other than their home as security for a secured loan).
Most lenders offering unsecured loans operate risk-based pricing on their loans. What this means is that they advertise a typical APR - an interest rate that at least 66% of those people who are accepted as borrowers will be offered. However, this might not be the rate you will be offered for your unsecured loan. What unsecured loans may cost you is going to depend, in large part, on lenders' views of your credit record. However, the interest rate you are offered, whatever it may be, will be a fixed rate so you will know exactly what your unsecured loan is going to cost you every month for the lifetime of the loan.
The Financial Services Authority does not regulate Personal or Unsecured Loans