What type of £25,000 loan can I get?
£25,000 unsecured or secured loans are available from different types of lenders, including high street, challenger banks, peer to peer lenders and credit unions.
Unsecured loans are personal loans where you don’t need to use an asset as security. This might be useful if you aren’t a homeowner, or if you’d just rather not put your assets at risk. You pay the loan back, usually at a set rate of interest, in monthly instalments over a specific period of time. If you can’t repay the loan, your credit history will be affected and it could lead to the lender taking court action.
A secured loan is where you use a high-value asset, usually a home, as security for borrowing. Secured loans are usually available for higher loan amounts than unsecured loans and often offer lower interest rates. If you are unable to meet repayments, the lender may repossess that asset to recover the money owed. This lowers the risk for lenders, but puts your home or other asset at risk of repossession if you default on payments.
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