Secured vs unsecured loans
Before deciding upon the terms and repayments on a £25,000 - £50,000 loan, you must first decide if you want an unsecured or secured loan.
A secured loan is backed by an asset such as a house, which acts as collateral if you fail to meet the repayments. If this happens, the lender can recover the asset to cover the money owed.
An unsecured loan, on the other hand, doesn’t involve any assets, meaning the lender can’t automatically take ownership of your items if you default on payments. However, a lender will pay closer attention to your credit score to judge if you are considered a trusted borrower.
There are positives and negatives to both unsecured and secured loans, depending on your unique circumstances. Speak to one of our team for more guidance on which loan best suits you.