Unsecured Loans

 

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An Unsecured Loan is not backed my any collateral, unlike a secured loan or mortgage : 

This type of loan, in theory, provides less risk to the borrower as the loan amount isn't secured against a home, but if repayments were not met, the lender would pursue outstanding debts via the courts which could still eventually lead to the loss if your home.

Interest rates are normally higher for unsecured loans and they do take longer to arrange, you will also be credit scored.

 

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