UK Online Unsecured Loans

Looking for UK online unsecured loans can be an overwhelming task.  It used to be that if you needed a loan you went straight to the bank, but for better or for worse, those days are gone. Today the unsecured loans market has many different types of lenders from big banks to non-traditional high street lenders such as payday loan or cheque cashing shops, and now there are also non-bank online lenders.

Traditionally, unsecured loans were taken out for such purchases as buying a used car, paying for schooling or for large home repairs.  These loans typically ranged from £5000 to £25,000 and from a minimum of one to a maximum of seven years. Unsecured personal loans are just that – unsecured.  This means that the lender has not required the borrower to off-set the risk of the loan with an asset.

For example, mortgages are the most common type of secured loan which are often secured by the value of the property with which the loan was used to purchase.  This means that if the borrower ever defaults on the loan, the lender can take back the asset, in the case of a mortgage that being the home or property, in order to settle the loan. 

In the case of unsecured loans, there is no property or asset held as collateral against the value of the loan.  Therefore, if a borrower defaults on an unsecured loan they don’t lose their home or car, but instead they do get bad marks on their credit history resulting in a poor credit rating.  Also, the bank or person who has provided the loan may actively pursue the loan, sometimes passing it to a collection agency.

The latest trend in the UK unsecured loans market are UK online unsecured loans. Online services allow you to apply in the privacy of your own home. Most online lenders require you to have a UK bank account and working debit card and to complete an online application.

UK online unsecured loans are a great way to get emergency cash when seemingly impossible situations arrive. From unplanned medical expenses, emergency travel, car repairs and more, these events occur even when you try to plan for the unexpected.
 

You may not reprint articles from this website without the written permission of Wonga.com.