Unsecured Loans

Advantages of unsecured loans:

• You can choose to arrange a longer-term over which to repay the loan. This will mean lower monthly repayments – but does increase the overall amount you will repay. Most unsecured loans are agreed with fixed repayments over a period ranging between one and five years.
• Some loans might offer the option of a payment holiday, typically two or three months, at the start of the agreement.
• The best loan rates are generally available to borrowers looking to make repayments over three or five years. You will often pay a higher rate of interest to borrow over a shorter term.

Disadvantages of unsecured loans:

• The interest charges on amounts above £15,000 or below £7,500 can be more expensive than you’d be charged when using other forms of finance.
• The best rates will go to those with the best credit scores.

Alternatives to unsecured loans

If you are only looking to borrow a small amount, a 0% money transfer credit card could be a better option. It allows you to borrow interest-free for periods up to three years (depending on the lender). You do pay a set-up fee, which can be added to the loan advanced.

Find the best deal

The directors of the Lending Channel have a long, established history providing lending and other financial solutions to clients from all walks of life. We have developed excellent lender relationships across all of our product lines, and this helps us find the best solution to your particular needs and circumstances.