UK PERSONAL LOAN FAQ

What is a loan?

A loan is money you borrow and agree to repay, with interest, over a specific timescale.

What is a personal loan?

A personal loan is the term used to describe a loan which is taken out for personal use. Personal loans are for your own personal use or to help with personal issues.

What is the difference between a personal loan and a bank loan?

In truth, there is not much difference between a personal loan and a bank loan. The only real difference is that bank loans are available specifically from banks whilst personal loans can be obtained from a number of sources. Also, bank loans tend to be approved for.

What are the main loan types?

The main loan types are secured loans, unsecured loans and remortgages.

Find out more about Secured Personal Loans

Or visit the Secured Loan FAQ

What is an Unsecured Loan?

An unsecured loan is a personal loan which, as the name suggests, does not require the borrower to put up any security against it. People who opt for unsecured loans are, typically, those who aren't in a position to offer collateral (i.e. non home owners, adverse credit records, CCJ's, mortgage arrears, debt issues).

As no collateral is required, an unsecured personal loan offers less risk to the borrower than a secured loan. In addition, applications for unsecured personal loans are turned around much quicker.

Although adverse credit records, CCJ's, mortgage arrears or debt issues are unlikely to affect your unsecured loan application, it is generally accepted that the better the credit record, the better the loan terms.

Find out more about Unsecured Personal Loans

Or visit the Unsecured Loan FAQ

What is a Remortgage?

A remortgage is the process by which you change mortgages. With a remortgage you end your existing mortgage scheme and migrate to a new scheme:

Remortgages are used for a variety of reasons including:

low interest rates - a remortgage allows you to gain a better rate of interest and reduce your monthly mortgage repayments.

debt consolidation - a remortgage allows home owners to consolidate their existing debt into one manageable monthly payment. Debt consolidation makes life easier in the short term and makes savings in the long term.

raise finance - a remortgage allows home owners to raise finance. As its interest rates are among the lowest of all loan types, a remortgage is an ideal solution to finance issues.

Find out more about Remortgages

Or visit the Remortgage FAQ

What is Debt Consolidation?

Debt consolidation is the process by which all outstanding loans and debt are restructured into one manageable monthly payment.

Essentially, a debt consolidation loan is a new loan which is used to repay all existing debt immediately. Debt consolidation loans are, typically, secured loans which require applicants to be home owners.

Debt consolidation provides both short term and long term benefits. In the short term it offers the borrower breathing space, as they now only have one manageable loan repayment to make each month. In the long term it offers savings, since paying off all existing debt now has eliminated the borrower incurring and interest or late fees in the future.

A debt consolidation loan is used to consolidate a wide range of debt including loans, credit card debt, store care debt and arrears.

Find out more about Debt Consolidation

Or visit the Debt Consolidation FAQ

UK Loan Advice, sponsored by UKloan24

This guide to UK personal loans is sponsored by UKloan24.

UKloan24 are one of the UK's leading online lenders offering highly competitive unsecured loans, secured loans and remortgages.

UKloan24 offer personal loans which are almost guaranteed for UK home owners up to 125% of property value.

Regardless of CCJ's, adverse credit, mortgage arrears or debt issues, in almost all cases UKloan24 can provide the personal loan you want.