Unsecured and Secured Loans Explained

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Explaining secured and unsecured loans

Unsecured and Secured Loans Explained

Secured Loans

This type of loan is secured against an asset you own, typically your home. One of the biggest benefits of this is that the interest rates tend to be cheaper than unsecured loans.

Your guide to secured loans3 Advantages

  1. Larger loans: this allows you to borrow more than a personal loan.
  2. Longer terms: you can borrow funds for a longer term, giving you more time to pay the funds back.
  3. Lower rates: especially compared to similar products such as credit cards and personal loans.

Unsecured Loans

You will take out a loan from a lender or bank and agree regular re-payments until the loan has been paid back in full. Typically, the interest rates are much higher compared to secured loans. If you fail to pay back your amount, this could damage your credit rating. Click here.

3 Advantages

  1. Quick completion: as there is no collateral to evaluate, the completion is much quicker compared to other loans.
  2. No risk to assets: unsecured loans aren’t secured to any assets so there is less risk.
  3. Available to homeowners and tenants: it is possible for anybody to borrow money.

Property Development Finance Loans

Hunter Finance offers secured loansRather than taking a loan from the bank, property developers tend to enquire with private lenders as they are far more likely to be accepted and have more freedom with their project.

Acceptable projects could include the purchase of a large property to convert it into multiple flats and a new build scheme.

Hunter Finance accepts private individuals, experienced property developers, building companies and commercial developers. If you are interested in a development finance loan between £100K and £2.5M, get in touch by calling 01825 749721.